Bitcoin is currently in a critical phase after reaching an all-time high and experiencing a significant price correction. This has led to a shift in market sentiment and raised questions about the sustainability of the rally.
Recent data shows an increase in the supply held by short-term holders, which typically occurs during bullish periods. This could indicate a shift in market dynamics and potentially signal a bullish trend. However, there is still uncertainty in the market, with analysts divided on the future trajectory of Bitcoin.
The upcoming weekly close will be crucial in determining the next direction of price action. The behavior of short-term holders will be closely monitored, as it can indicate market sentiment. The current market landscape is characterized by volatility, and the interplay between short-term holder supply and market sentiment will shape Bitcoin's future direction.
Investors must weigh the potential for a renewed rally against the risks of deeper corrections. The $97K level is being closely watched, as it will provide insights into Bitcoin's near-term price action.