Bitcoin reclaims key support above $60,000 after attempt to sweep March lows

Bitcoin (BTC) reclaimed the crucial $60,000 support level in a show of resilience after bears made an attempt to sweep the lows set in March at $59,000, based on CryptoSlate data.

The flagship crypto was trading at $60,800 as of press time after falling more than 5% to roughly $59,100 on April 30 as New York closed out the trading day.

The wider crypto market also saw significant losses for the day, with most of the major caps down between 5% to 10%.

As of press time, Ethereum (ETH) was trading at $3022 after falling to a low of $2919, while BNB was trading around $580 after recovering from a low of $555.

Solana (SOL) experienced a more dramatic 9% fall to a low of $121 before recovering to $128 as of press time.

Euphoria phase ending

Bitcoin’s latest “euphoria phase” is showing signs of cooling, potentially signaling an approaching bottom for the crypto’s price, according to an April 30 Glassnode report.

After surging to an all-time high of $73,000 in early March, Bitcoin has experienced a significant retraction, with prices now consolidating between $60,000 and $67,500. The latest pullback is part of a broader “net redistribution” phase following the flagship crypto’s post-halving rally.

Glassnode’s analysis revealed that the cooling phase is largely driven by newer investors, who are taking profits and contributing to sell-side pressure.

The market intelligence firm utilized its Accumulation Trend Score to study patterns in Bitcoin’s price movements, observing similarities with previous bull markets.

The firm also highlighted the impact of geopolitical tensions in the Middle East and the introduction of spot Bitcoin ETFs in the US in January — both of which have influenced Bitcoin’s price.

Notably, the Net Unrealized Profit and Loss (NUPL) metric, which measures net paper profits or losses normalized by market cap, has been above 0.5 for the past seven months, indicating a sustained euphoria phase.

Cautiously optimistic

Despite the current downturn, Glassnode suggests that the market may be nearing a point of seller exhaustion, particularly among short-term holders who have dominated recent selling.

The cost basis of investors who have held Bitcoin from one week to one month is now at $66,700, a key figure as it closely aligns with their realized losses since mid-March.

With Bitcoin maintaining its position above the key $60,000 price, the market outlook remains cautiously optimistic. However, market sentiment is decidedly bearish in the short term if Bitcoin fails to hold above $60,000.

Meanwhile, future economic data, regulatory developments, and changes in the geopolitical climate are expected to play key roles in shaping the direction of Bitcoin and the broader crypto market.