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▲ Bitcoin (BTC)/AI generated image
Bitcoin (BTC) has successfully defended the $81,000 mark and has begun a structural improvement towards a long-term upward rally, starting with the positive conversion of realized profits.
According to cryptocurrency specialized media FXStreet on May 7 (local time), Bitcoin is successfully maintaining the psychological resistance level of $81,000 amidst a gradually improving market environment. The recent stable positive realized profits of investors are analyzed as a key driving force for price support, effectively absorbing selling pressure in the market. With the combination of large-scale capital inflows and positive on-chain data, the virtual asset market has secured a solid foundation for growth.
On-chain indicators show that the current price trend is based on robust underlying strength, beyond a mere temporary rebound. The technical indicator Market Value to Realized Value (MVRV) proves that Bitcoin still has room for further upside. Even with both short-term and long-term holders recording profits, a strong holding tendency is observed instead of large-scale inflows to exchanges, further solidifying the market's downside rigidity.
The continuous decrease in Bitcoin holdings on exchanges exacerbates supply shortages, acting as a catalyst for price increases. As the amount of Bitcoin moving from centralized exchanges to external wallets increases, the liquid supply that can be immediately sold in the market has sharply decreased. Amid concerns of a potential supply shock, the steady accumulation by institutional investors continuously pushes up Bitcoin's price support levels.
The macroeconomic environment is also shifting favorably for risk assets, supporting market optimism. With signs of global inflation easing and expectations of interest rate freezes spreading, a steady inflow of institutional-grade funds into the virtual asset market has been observed. The net inflow of funds through Bitcoin spot ETFs remains stable, positively impacting liquidity provision and asset value revaluation.
After breaking through key technical resistance levels, Bitcoin has formed new price support levels, laying the groundwork for a long-term ascent. Investors are closely monitoring changes in on-chain indicators and the movements of supply and demand entities to explore the market's future direction. Various positive indicators currently observed clearly demonstrate that the virtual asset market has entered a stable growth trajectory.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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