CryptoQuant.com
Bitcoin Price Support Levels
The price of Bitcoin experienced an 8% decrease last week after reaching above $30,000, which signaled the beginning of the overheated bull phase. However, the market has now exited this phase and entered into the bull stage, albeit still at high levels. The decline in Bitcoin's price was due to profit-taking by traders in the perpetual futures markets, with open interest falling as prices fell. Nevertheless, traders are again opening long positions, and future market traders took profits following a rally in Ethereum that pushed its prices to levels above $2,000, fueled by the successful activation of the Shanghai upgrade on April 12. Funding rates are now indicating a neutral attitude among traders, which is a shift from the bullish sentiment seen in recent weeks. Despite this, the spending activity of whales remains high, with as much as 40% of total coins being spent as prices approached the $30K zone. Typically, price rallies coincide with lower whale spending activity of around 20% of total coins being moved. Additionally, long-term holders of Bitcoin have been spending coins at the highest profit margin since May 2022, when Bitcoin was trading at around $30,000. Conversely, short-term holders are still spending at a small profit. Typically, prices bottom out after a correction when short-term holders spend their coins at a 4% loss, as seen by the short-term holder SOPR falling to 0.96. The short-term cost basis, or the realized price, currently stands at $24,000, which is generally a good indicator of support for prices when in a bull market.