Bitcoin regains significant support level exceeding $60,000 following efforts to reach March lows.

Bitcoin (BTC) has regained the essential $60,000 support level, demonstrating resilience after bears attempted to push prices down to the March lows of $59,000, according to data from CryptoSlate.

As of the latest update, the leading cryptocurrency was trading at $60,800 after experiencing a decline of over 5% to approximately $59,100 on April 30, coinciding with the close of the trading day in New York.

The broader cryptocurrency market also faced notable declines for the day, with most major cryptocurrencies down between 5% and 10%.

At the time of reporting, Ethereum (ETH) was priced at $3022 after dipping to a low of $2919, while BNB was trading around $580 after bouncing back from a low of $555.

Solana (SOL) saw a more pronounced drop of 9%, reaching a low of $121 before recovering to $128 as of the latest update.

Euphoria phase ending

Bitcoin’s recent “euphoria phase” appears to be subsiding, which may indicate a potential bottom for the cryptocurrency’s price, as noted in a Glassnode report dated April 30.

Following a peak of $73,000 in early March, Bitcoin has undergone a notable retraction, with prices now stabilizing between $60,000 and $67,500. This latest pullback is part of a wider “net redistribution” phase following the flagship cryptocurrency’s post-halving rally.

Glassnode’s analysis indicated that this cooling phase is primarily influenced by newer investors who are taking profits, thereby contributing to selling pressure.

The market intelligence firm employed its Accumulation Trend Score to analyze Bitcoin’s price patterns, finding parallels with previous bull markets.

The firm also pointed out the effects of geopolitical tensions in the Middle East and the launch of spot Bitcoin ETFs in the US in January—both factors that have impacted Bitcoin’s pricing.

Importantly, the Net Unrealized Profit and Loss (NUPL) metric, which assesses net paper profits or losses adjusted for market capitalization, has remained above 0.5 for the past seven months, signifying a prolonged euphoria phase.

Cautiously optimistic

In spite of the current decline, Glassnode posits that the market may be approaching a state of seller exhaustion, particularly among short-term holders who have been the primary sellers recently.

The cost basis for investors who have held Bitcoin for one week to one month is currently at $66,700, a significant figure as it closely corresponds with their realized losses since mid-March.

With Bitcoin sustaining its position above the critical $60,000 mark, the market outlook remains cautiously optimistic. However, sentiment is decidedly bearish in the short term if Bitcoin fails to maintain its position above $60,000.

Looking ahead, forthcoming economic data, regulatory changes, and shifts in the geopolitical landscape are anticipated to play crucial roles in determining the trajectory of Bitcoin and the wider cryptocurrency market.

The post Bitcoin reclaims key support above $60,000 after attempt to sweep March lows appeared first on CryptoSlate.