Tldr:
- Bitcoin continues to trade below $72K after repeated rejections, keeping the market within a narrow consolidation range.
- On-chain data shows that only 59% of Bitcoin supply is still generating profits, near levels seen during previous bear markets.
- Traders are watching the $69,100 support and $72,000 resistance as key areas that could determine Bitcoin’s next move.
- Analysts point out that extreme loss levels historically create opportunities to accumulate before broader market sentiment improves.
Bitcoin It continues To trade within a narrow range below $72,000 as analysts track liquidity levels and momentum signals.
Meanwhile, on-chain data shows that Bitcoin’s supply share of profits is falling toward levels last seen during previous bear cycles.
Bitcoin faces resistance near $72K as traders monitor liquidity areas
Bitcoin has struggled to maintain momentum above the $72,000 area over recent sessions. The market rejected this level again, keeping price action within a narrow trading range.
Cryptocurrency analyst Lennart Snyder discussed the setup in a post on X, noting that Bitcoin faced rejection near $72,000 again. As a result, he opened a small hedge shortly after the failed breakout attempt.
According to Snyder, liquidity around $66,590 remains a potential downside target this week. He also noted that the current zone offers poor risk-reward conditions for long trades.
The analyst explained that long setups may become attractive under two scenarios. One option involves Bitcoin reclaiming the $72,000 resistance area. The other scenario includes a decline towards the $69,100 level.
This area contains a four-hour imbalance and represents the lower edge of the recent trading range. If buyers regain control, Snyder expects liquidity around $74,800 to become the next weekly target.
Meanwhile, technical indicators still appear moderate Bullish momentum. The RSI is currently near 65, indicating steady buying pressure.
However, the index is still below the overbought level of 70. This suggests there is room for further upside if demand continues.
The Moving Average Convergence Divergence indicator also remains positive. The MACD line remains above the signal line, while the histogram shows weak but positive momentum.
These signals indicate that consolidation may continue before the next trend develops.
On-chain data shows Bitcoin earnings viewing near bear market levels
While the price remains near its recent highs, on-chain data presents a different picture of investor positions.
CryptoQuant contributor Darkfost shared new data showing a decline View Bitcoin Earnings. The analysis estimates that about 59% of the supply of Bitcoin currently in circulation is profitable.
This means that approximately one in two bitcoins remains held at a loss. This number is near the levels observed during previous bear market conditions.
Historically, the market tends to operate at a higher share of profitable supply. The data suggests that the long-term average is close to 75%.
The gap between the current levels and the historical average shows that many investors entered positions at higher prices.
The data also sets a key threshold around the 50% level. Previous bear markets have often bottomed near that point. Although the current market has not reached this level, the trend indicates widespread unrealized losses across the network.
Darkfost explained that a profitable offer plays an important role in maintaining market momentum. When investors lock in gains, they are more likely to continue participating in the market. However, when losses dominate the supply distribution, sentiment is often weakened.
For this reason, the analyst described the current environment as more favorable accumulation Strategies. Market participants often increase exposure during periods when losses reach extreme levels.
The strategy aims to position investors before broader market sentiment becomes positive again. At the same time, exposure usually decreases when the supply’s share of profit approaches 100%.
Currently, Bitcoin remains within a specific price range while traders are monitoring resistance near $72,000 and support levels below $70,000.
