Meanwhile, Bitcoin is breaking down below its realized warm supply floor at $94,550. This is the average purchase price paid by those who have held their assets for more than six months. As of Thursday trading, Bitcoin has officially shot above the $96,000 level, hitting levels upwards of $97,000. This movement has caused industry commentators to speculate on a possible imminent skyrocket upside breakout for the cryptocurrency.
Everyone recognizes that the landscape and current market dynamics are heavily shaped by institutional buying. Companies like MicroStrategy, for example, are, or at least were, buying more Bitcoin every month than miners were able to mine. To clarify, miners currently mint about 13,500 new Bitcoin every month.
This additional buying pressure enforced by players such as MicroStrategy introduces what a few analysts are calling a “synthetic halving.” This term suggests that the reduced supply available to the market, due to aggressive institutional buying, mirrors the effects of a halving event, which historically precedes price surges.
Capo Of Crypto, a popular crypto market commentator, expects Bitcoin to build its top in the $92,000–$98,000 range. He sees this area as an important line of resistance for Bitcoin. Capo Of Crypto still has a bullish perspective on Bitcoin as long as the leading crypto asset stays above the $92,000 support.
On Bitcoin, he warns, the $96,000–$98,000 range is “major resistance.” This resistance may weigh on its bullish momentum in the near term. That recent breakout above $96,000 comes just before what some analysts are declaring is a “pivotal week” for the cryptocurrency.
