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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Critical Moment For Bitcoin: Analyst Reveals Key Psychological Turning Point

Samuel Edyme
Samuel Edyme
8 months ago
3 mins read
Critical Moment for Bitcoin: Analyst Reveals Key Psychological Turning Point

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The recent Bitcoin price action appears to have caught the attention of market analysts, with a particular focus on its positioning between key psychological levels.

A CryptoQuant analyst under the pseudonym “datascope” recently posted on the CryptoQuant QuickTake platform, providing an in-depth analysis of Bitcoin’s current price movements.

The analyst highlighted that Bitcoin is at a critical psychological turning point, where market sentiment could shift towards optimism or pessimism based on its trajectory.

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Bitcoin Historical Patterns Suggest Optimism Could Persist

According to datascope, Bitcoin’s price, which currently trades just above $62,000 is sitting in a range where historical data suggests that the market participants’ outlook can sway in either direction, depending on whether they are in profit.

Bitcoin supply in profit.
Bitcoin supply in profit. | Source: CryptoQuant

The analyst further explained that as long as Bitcoin stays within this critical range, the chances of a significant price decline are minimal. This “zone of optimism” range has been a determining factor in previous bull markets, most notably in 2016 and 2020.

The CryptoQuant analyst emphasized that the “Supply in Profit” metric, which measures the portion of Bitcoin’s circulating supply held by investors who are in profit, is a vital indicator in understanding market sentiment.

In the past, whenever a significant portion of Bitcoin’s supply was in profit, it resulted in an optimistic outlook, supporting the price to push higher. Bitcoin’s current position within this zone of optimism suggests that a continued rally could be in store if the price maintains stability.

#Bitcoin at a Critical Psychological Turning Point

“Bitcoin’s price is sitting at a psychologically important level. Historically, when prices stayed within this range, the market continued its upward trend.” – By @0xDataScope

Read more 👇https://t.co/q6FzjuhRHS pic.twitter.com/ouZIuztaJd

— CryptoQuant.com (@cryptoquant_com) October 9, 2024

Looking back at historical bull markets, the analyst pointed out that during the bull runs of 2016 and 2020, Bitcoin maintained its position between a psychological turning point and the optimism zone, allowing the market to enter a sustained upward trend.

Bitcoin supply in profit from 2016 to 2024.
Bitcoin supply in profit from 2016 to 2024. | Source: CryptoQuant

Key Indicators To Watch Moving Forward

In addition to the “Supply in Profit” metric, the CryptoQuant analyst suggests monitoring the overall market sentiment and Bitcoin’s price movements in the coming days.

Should Bitcoin stay within this critical psychological range, it is less likely to experience a significant price drop. However, if Bitcoin fails to hold this zone and breaks below, market sentiment could turn bearish, leading to a further price decline.

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The analysis suggests that Bitcoin’s current price behavior largely depends on market participants’ psychology, and this psychological turning point will likely dictate the next major move.

Bitcoin (BTC) price chart on TradingView
BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

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Samuel Edyme
Samuel Edyme

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Read more

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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