Bitcoin, Why Couldn't It Break $80,000?

"Stopped at the threshold of $80,000"... The real reason Bitcoin's rally stalled has been revealed

▲ Bitcoin (BTC), US Dollar (USD)/ChatGPT generated image ©

The failure of Bitcoin (BTC) to break through $80,000, despite its continued rally, is analyzed to be due to a combination of on-chain structural resistance and overheated sentiment, rather than simple profit-taking.

According to cryptocurrency media outlet Bitcoinist on April 25 (local time), Bitcoin rebounded from below $74,000 at the beginning of the week, surpassing $79,000 on April 22 to reach its highest price in approximately three months. However, its upward momentum subsequently slowed, failing to break through $80,000.

The biggest reason is the resistance from the on-chain indicator 'True Market Mean Price'. This indicator represents the average acquisition price based on actual circulating supply, excluding long-term unused coins and mining rewards, and serves as a psychological baseline for market participants. This range has acted as a strong support line in the past, and it is analyzed to be acting as strong resistance now, limiting further gains.

Experts emphasize that even if this indicator is clearly broken, a confirmation period of at least three days is necessary. They warn that failure to break through could lead to a resumption of a short-term bearish trend.

Investor sentiment also hindered the rally. According to Santiment, as Bitcoin approached $80,000, the market entered a state of excessive optimism, or FOMO (Fear Of Missing Out). This is generally interpreted as a short-term peak signal and indeed led to a slowdown in upward momentum.

Currently, Bitcoin is taking a breather, trading around $77,588, down 0.3% over a 24-hour period. It is observed that after a short-term correction to alleviate overheating, the market is likely to attempt to break through $80,000 once again if sentiment stabilizes.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*