Bitcoin (BTC) has struggled to surpass the $72,000 mark once again, as on-chain indicators imply it is facing its most psychologically taxing phase.
Key Insights:
- Bitcoin remains stagnant after repeated rejections at the $72,000 threshold.
- An increasing supply in loss points to a daunting segment of the bear market.
- For Bitcoin to reverse its current downturn, it needs to break through the $72,000 resistance.
A Difficult Phase for Bitcoin
Bitcoin’s ongoing struggle reflects a time of heightened uncertainty among market players who appear more hesitant than committed, according to CryptoQuant analyst MorenoDV.
“A combination of 3 key on-chain indicators implies that the market is navigating one of the most psychologically challenging parts of the trading cycle,” MorenoDV commented.
This analysis coincides with a metric that evaluates investor sentiment in the BTC market, indicating ongoing bear market consolidation following significant reductions from previous highs.
Bitcoin market cycle analysis
(Bitcoin bull-bear market cycle indicator vs. apparent demand. Source: CryptoQuant)
The lack of strong buying momentum suggests a cautious approach from market players, with the Long-Term Holder SOPR now below the critical threshold, reflecting even seasoned investors are recognizing losses.
“Historically, this phase begins to manifest later in the bear markets as extended uncertainty undermines even the strongest convictions.”
- In addition, the current increase in the Bitcoin supply that is at a loss is nearing the 40-45% range, indicating a troubling trend reminiscent of previous significant market corrections.
As several analysts project a continuation of Bitcoin’s downward trend into late 2026, with some forecasts suggesting a drop to $30,000, the focus remains on the critical resistance level at $72,000.
Bitcoin’s Key Resistance Level
Attempts to rise above the $72,000 barrier have failed repeatedly, maintaining downward pressure along with a lack of decisive action among investors.
BTC/USD four-hour chart
(BTC/USD four-hour chart. Source: Daan Crypto Trades)
Another analysis from Daan Crypto Trades remarked, “If this resistance barrier remains intact, Bitcoin might revert to $69K or even fall towards the $66K support area.”
BTC/USD analysis
(BTC/USD analysis. Source: BenCrypz)
This article does not constitute financial advice. All investment and trading strategies involve risks. Readers are encouraged to undertake their own research before making any investment decisions.
