Bitcoin is showing resilience, holding above the $69,000 level after slightly retreating from recent local highs of $73,600. After weeks of bullish momentum and approaching an all-time high, BTC has settled just below critical resistance at $73,794, a key level that, if breached, will push the cryptocurrency into price discovery mode.

According to data from CryptoQuant, short-term holders are seeing a net gain to loss of -20 BTC, indicating a wave of panic selling among retail investors. This type of behavior, often fueled by fear, uncertainty and doubt (FUD), can precede significant price increases as stronger hands accumulate BTC at lower prices.

Historically, similar sell-offs by retail investors have been followed by renewed momentum as long-term holders take advantage of the opportunity to enter or strengthen their positions. If Bitcoin can maintain support above $69,000, the chances of a breakout above the all-time high will boost significantly.

Market observers are now closely monitoring the resistance level, as crossing it could trigger a wave of buying interest and push BTC to recent highs. The coming days could prove crucial, setting the stage for Bitcoin’s next large move.

Bitcoin sales in faint hands

Bitcoin recently attempted to soar to recent heights but failed to break its all-time high of $73,794, entering a consolidation phase as the market looks at key events: next week’s US elections and the Federal Reserve’s anticipated rate decision percentages.

The latest CryptoQuant data, shared by analyst Axel Adler on Xindicates a noteworthy trend among short-term BTC holders. The net profit to loss ratio for these holders shows a negative balance of -20 BTC, indicating a wave of panic selling as Bitcoin struggles to set recent highs. This sell-off among short-term investors, who tend to respond more quickly to market volatility, suggests some caution in the face of uncertainty.

Adler emphasizes that in such turbulent times, a long-term “HODL” (hold on for life) strategy may prove to be the most beneficial strategy. Maintaining a forceful position despite market noise has historically rewarded BTC investors who keep their positions intact during periods of retracement and increased volatility.

Given Bitcoin’s all-time high, a successful breakout would likely mark the beginning of a broad market bull run. The coming days will be critical as Bitcoin is at a key point in its cycle, teetering between forceful consolidation and the potential for explosive growth.

The impact of the Federal Reserve’s interest rate decisions, combined with potential election results, could create the market conditions needed for BTC to exceed an all-time high. Breaking through this level would not only confirm the bullish outlook for BTC, but would likely trigger a rally across the cryptocurrency market.

BTC is holding above key support

Bitcoin is currently trading at $69,620 after rebounding from a recent high near $73,600. Despite this pullback, the bulls remain in control as BTC remains well above the key support level of $69,000 – a price point that has represented resistance since delayed July. This level has now turned into forceful support, reinforcing the bullish sentiment in the market.

If Bitcoin holds above $69,000, a rally above all-time highs again seems likely. Breaking this resistance would push BTC into uncharted territory, potentially sparking a recent wave of bullish momentum and price discovery. However, if the price falls below this level, it may signal the need for a more significant correction to accumulate enough purchasing power for another move higher.

The $69,000 level serves as a key indicator of market confidence, as its loss would mean BTC may temporarily seek lower support levels to attract recent buyers and stabilize before attempting to reach recent highs again. For now, Bitcoin’s price structure remains forceful and as long as this support holds, the market expects further growth in the coming days. Bulls are closely watching this level because it could determine the next phase of Bitcoin’s bull run.

Featured image from Dall-E, chart from TradingView