This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin, the world’s largest cryptocurrency, has experienced a period of consolidation and profit-taking after a significant price surge. Despite reaching a yearly high of $44,500, the price has pulled back about 6% as some investors take profits. On-chain data suggests that Bitcoin’s fair value is currently between $30,000 and $36,000.
The price rally has paused after encountering resistance at $44,500, leading to short-term investors selling their holdings. Large BTC transactions into crypto exchanges have also been observed, indicating potential participation from whale addresses in the selloff.
According to Glassnode’s fair value models, a short-term correction was expected due to the lagging fair price compared to the current market spike. Historical trends show that it typically takes between 14 to 20 months between the realized price and the creation of an all-time high. The current spot prices are fluctuating around the realized price, suggesting that Bitcoin may experience a few more months of movements around the current fair value of $36,000.
Analyst Ali Martinez highlights strong support between $37,150 and $38,360, backed by 1.52 million addresses holding 534,000 BTC. Additionally, there are two resistance walls at $43,850 and $46,400 that could impede the BTC uptrend.
Glassnode’s report also examines other pricing models, including the Mayer Multiple and the NVT Premium indicator. The Mayer Multiple is close to the 1.5 level, which has historically formed a resistance level in prior bull cycles. The NVT Premium suggests an overvaluation in relation to the network throughput.
Bitcoin is currently trading at $40,963, down 6% in a 7-day timeframe but still showing gains from its December open. The $44,500 level is crucial, as the industry awaits a bullish run following the approval of spot Bitcoin ETFs in the US. The crypto market remains in a bullish sentiment, with the Fear & Greed Index pointing to greed. A breakthrough at $44,500 would signal the resumption of the bullish trend, with the $46,400 level as the next resistance to watch.