The price of Bitcoin is once again under pressure following recent declines. As of the time this article was prepared, Bitcoin is trying to hold above the critical $85,000 level.
Although downward risks continue, persistent investor confidence is currently preventing a deeper correction. Long-term investors play a significant role in bringing balance to the market.
Bitcoin investors are still optimistic
According to Glassnode co-founder Rafael, publicly traded companies' Bitcoin treasury assets continue to increase despite BTC's decline from $125,000. This suggests that institutional investors are not facing forced selling pressure. Although many stocks linked to Bitcoin continue to remain below mNAV levels, accumulation on the company treasury side continues.
This behavior indicates that large investors are positioning themselves for recovery rather than short-term exits. The limited panic selling reflects confidence in Bitcoin's long-term value.
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On-chain data indicates that momentum has changed on the macro side. The short-term investor/long-term investor token ratio has risen to 18.4%. This means that it has exceeded the statistical upper band of 16.9% and indicates that the influence of short-term players in the market has increased.
The increase in the activity of short-term investors could lead to a rise in market liquidity and speed of movements. These investors react much faster to price changes and increase volatility. As a result, intraday fluctuations in Bitcoin may intensify, but long-term investors will continue to provide support during pullbacks.
We are witnessing a scenario in Bitcoin where both resisting long-term investors and reactive short-term investors' influences are mixed. This balance may limit sudden drops but also restricts rapid rises. Since short-term players have taken over the momentum, price stagnation in BTC may continue for a while.
At the time this article was written, Bitcoin's price is moving at the level of 86,581 dollars and is holding above the support level of 86,361 dollars. If market conditions improve and selling pressure from short-term investors decreases, the BTC price may recover towards the resistance of 90,401 dollars. Exceeding this level would restore confidence after recent losses.
However, if the support of 86,361 dollars is lost, downward pressure may increase. In this case, the level of 84,698 dollars stands out as the next support area. If this area cannot be maintained, the risk of Bitcoin dipping below 85,000 dollars and falling to 82,503 dollars may arise; such a scenario would invalidate the bullish expectations.
