Bitcoin Holds Solid Support $25,400 Despite SEC Suppression

Key Points:

• Bitcoin has remained stable amid a revamped market-wide initiative by the SEC.
• Its price performance has not dampened the enthusiasm of short-term holders.
• $25,400 is Bitcoin’s key support level.

Despite continuous governmental scrutiny and fear, uncertainty, and doubt (FUD) surrounding Bitcoin (BTC), the market’s biggest cryptocurrency, the price remains stable.

During the previous eight weeks, a negative trend formation has pressed cryptocurrency prices, sending total market capitalization to its lowest level in more than two months, at $1.05 trillion.

Short-term investors, who are notorious for being the first to sell their assets when prices fall, have shown exceptional fortitude in the face of the present market turmoil.

These holders are defying the trend by remaining in the market, expressing their belief in Bitcoin’s future profitability. This time, Bitcoin, the top cryptocurrency, gained 0.3% in seven days.

The downtrend that began in mid-April has repeatedly challenged the support level, suggesting that an eventual break to the upside will need additional effort from the bulls.

Significantly, the present cycle’s profitability for both long-term and short-term investors has not yet reached levels that would need major selling pressure. This pattern indicates that Bitcoin still has space for development and the possibility of a new wave of demand.

In separate cases filed last week against cryptocurrency exchanges Binance and Coinbase, the Securities and Exchange Commission designated numerous altcoins as securities.

Despite persistent regulatory difficulties and unfavorable market sentiment, short-term investors remain confident in their Bitcoin investments. Moreover, Glassnode data has bolstered the resiliency of short-term investors by demonstrating a recent increase in hodling activity.

According to the statistics, after a month of intense selling, short-term holders have shown a renewed determination to keep their Bitcoin holdings. This change in opinion demonstrates their optimism about Bitcoin’s future potential, notwithstanding regulatory uncertainty.

Although this consistency is laudable for an asset class that is often volatile, it may come at a cost, particularly if the present support level of $25,400 falls. Maintaining the confluence support would be a difficult effort for the bulls. If this support is gone, investors may begin to prepare for lengthy falls to lower levels such as $24,000, $22,000, and $20,000.

However, long-term Bitcoin holders, in addition to short-term ones, have shown trust in the cryptocurrency. Some holders have moved their tokens to centralized exchanges with little fluctuation, demonstrating their commitment to maintaining their Bitcoin holdings for the long run.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Harold

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