The price shot up over $79k in a short time, exciting investors. However, this rally didn’t last long.
Bitcoin, once again approached the critical $80k level but failed to break through. Especially with recent buyers reaching their cost basis, selling pressure increased, and the price pulled back.
During the night, BTC climbed to $79,300, hitting a 12-week high, but then faced selling pressure and dropped to around $77,600. Thus, it couldn't surpass the $80k threshold that it has attempted to breach several times since January.
Global developments have also influenced this market movement. The tension between the US and Iran and the news flow regarding the Strait of Hormuz have directly affected investors' risk appetite. Expectations that the strait could reopen, even if briefly, had a positive impact on the market.
However, analysts believe the reason this rally may not be sustainable is pretty straightforward: short-term investors have started to take profits.
The $80K level is currently seen as a crucial threshold for the market. This level aligns with the breakeven point for the last investors who bought in. Naturally, this increases the selling pressure.
Experts say if Bitcoin can't break through this area strongly, we could see continued volatility. On the other hand, if buying picks up, there’s a chance it could settle above the $80K–$83K range.
Right now, all eyes are on these critical levels and the upcoming macroeconomic developments. Especially central bank decisions and economic data are looking like they’re gonna play a key role in determining Bitcoin's direction.
Stay tuned for new developments.
