Bitcoin’s price continues to struggle below the psychological $85,000 mark, failing to break past this critical level over the past two months. 

Despite some attempts to secure a rise, the leading cryptocurrency has remained stagnant, increasing pressure on long-term holders (LTHs). These investors, once enjoying solid profits, are now seeing a decline in their unrealized gains.

Bitcoin Investors Are Pulling Back

The MVRV Long/Short Difference, a key metric used to gauge market sentiment, reveals a concerning trend for LTHs. The indicator recently hit a two-year low, suggesting that long-term holders’ profits are at their lowest since March 2023. This shift indicates that the market conditions are increasingly unfavorable for LTHs. 

As Bitcoin’s price fails to recover, short-term holders (STHs) are beginning to dominate, capitalizing on the price fluctuations. Meanwhile, long-term holders (LTHs), facing diminishing profits, hold off on buying or holding more.

The overall momentum of Bitcoin, measured by technical indicators, also reflects bearish signals. The HODLer net position change further backs this narrative, as it shows that LTHs have sold a significant portion of their holdings over the last two weeks. In total, these sales amounted to more than 6,596 BTC, which is worth over $550 million. 

Although this figure may not be enormous, the psychological shift from confidence to caution among LTHs is a larger concern. This lack of conviction could delay Bitcoin’s recovery and contribute to further price stagnation. In turn, this could further limit market activity and exacerbate the ongoing downturn.

BTC Price Is Facing A Decline

Bitcoin’s price is trading at $84,421, hovering just above the crucial support level of $82,619. The price remains trapped under the key $85,000 resistance level, which could cause further pressure if it fails to break above. If Bitcoin loses support at $82,619, a decline to the next major psychological support of $80,000 is possible.

If the bearish trend continues, the price could fall further, with $78,841 emerging as a critical level to watch. Losing this support would mark a more significant downturn, confirming the continued market weakness and deepening the bearish outlook for Bitcoin.

However, if Bitcoin manages to breach and hold $85,000 as support, it could ignite a recovery, pushing the price back up toward $86,848. A sustained rise above $85,000 would invalidate the current bearish trend and pave the way for a potential surge toward $89,800, reestablishing confidence among investors.

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Ethereum price started a fresh increase above the $1,580 zone. ETH is now consolidating gains and might aim for more gains above $1,665.

• Ethereum started a decent increase above the $1,580 and $1,620 levels.
• The price is trading below $1,620 and the 100-hourly Simple Moving Average.
• There is a new connecting bearish trend line forming with resistance at $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $1,665 resistance zone.

Ethereum Price Gains Pace

Ethereum price formed a base above $1,500 and started a fresh increase, like Bitcoin. ETH gained pace for a move above the $1,550 and $1,580 resistance levels.

The bulls even pumped the price above the $1,620 zone. A high was formed at $1,668 and the price recently started a downside correction. There was a move below the $1,650 support zone. The price dipped below the 23.6% Fib retracement level of the upward move from the $1,482 swing low to the $1,668 high.

Ethereum price is now trading below $1,600 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $1,640 level. There is also a new connecting bearish trend line forming with resistance at $1,640 on the hourly chart of ETH/USD.

The next key resistance is near the $1,665 level. The first major resistance is near the $1,680 level. A clear move above the $1,680 resistance might send the price toward the $1,720 resistance. An upside break above the $1,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $1,750 resistance zone or even $1,800 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $1,640 resistance, it could start a downside correction. Initial support on the downside is near the $1,600 level. The first major support sits near the $1,575 zone and the 50% Fib retracement level of the upward move from the $1,482 swing low to the $1,668 high.

A clear move below the $1,575 support might push the price toward the $1,550 support. Any more losses might send the price toward the $1,520 support level in the near term. The next key support sits at $1,480.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $1,575

Major Resistance Level – $1,665