Bitcoins next breakout movement could take 4 more months
Bitcoins (BTC) selling pressure is potentially subsiding as traders register 12% in unrealized loss margins, according to CryptoQuants head of research, Julio Moreno.
Moreno added that this could potentially result in BTC getting stuck in a lateralization pattern for up to four months.
He further highlighted that the current level of traders unrealized losses usually signals a local bottom for Bitcoin. Previous occurrences were registered between June and October 2023 and June and October 2024 if the pattern repeats, Bitcoin could fail to register decisive price action until June.
Based on CryptoSlate data, Bitcoin was trading at $82,900 as of press time, down roughly 0.9% over the past 24 hours.
The data highlighted by Moreno comes as Bitcoin holders realized $1.7 billion in losses on Feb. 26, the largest loss realization movement since August 2024.
Potential for further downside
Morena said that despite the traders unrealized loss margin suggesting a local bottom, Bitcoins metrics are in correction territory.
He noted that the MVRV, a commonly used indicator, is below its 365-day moving average. As a result, it can take more time for BTC to find its footing and start a recovery movement.
Meanwhile, CryptoQuant CEO and founder Ki Young Ju shared that it might take one more month to determine whether Bitcoin will revert to a downtrend movement or if a recovery is possible. He added that it all depends on the increase in the buyers demand.
According to Ju:
Based on the typical two-year cycle, the bull market should last until April 2025 I mentioned this back in May 2024. The next month or two will be a key turning point for the BTC market. If every indicator confirms a downtrend, Ill admit I was wrong and post about it.
However, despite the potential for further downside, Ju is not convinced that BTC could drop below $77,000. In his assessment, the worst-case scenario would be Bitcoin consolidating near $77,000 before resuming an upward movement.
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Text source: CryptoSlate
