Bitcoin's Liquidity Concern Under $60,000 and Bearish Sentiment Detected

By: Eliza Bennet

Quick Take

Bitcoin experienced a 4% rally on April 18, rebounding from just below $60,000 on April 17. Major crypto analysts have identified $58.8k as a significant support level for bitcoin - a level that has acted as a support during bull runs in the past. However, if Bitcoin drops below this support level, it could signal a bearish trend, similar to the breach that occurred in May 2021, triggering a bear market.

The URPD (Unspent Realized Price Distribution) metric, as defined by Glassnode, shows the prices at which the current set of Bitcoin UTXOs were created, with each bar representing the amount of existing Bitcoin that last transacted within a specific price bucket.

Interestingly, less than 5% of the Bitcoin supply fluctuates between $50,000 and $60,000, a range that Bitcoin moved through within two days between Feb. 26 and Feb. 28. A substantial portion of the liquidity and supply lies within the $40,000 to $45,000 range, which could be a short-term price target if the critical support is lost.

Meanwhile, analytics firm, Santiment, has also noted a spike in bearish sentiment from the crypto crowd, indicating a possible price bounce for Bitcoin might be near.