Bitcoin (BTC) May Have a Hard Time Reaching $80,000 for This Reason

Bitcoin price recently broke out of a bullish pattern, suggesting a potential rise to $80,000. However, despite this positive technical profile, the biggest barrier preventing the leading cryptocurrency from reaching new highs is the behavior of the investors holding it themselves.

BTC retail investors have been aggressively dumping their assets, creating an obstacle to Bitcoin's bullish trajectory.

Bitcoin Investors Greedy

In recent days, investors have started selling their Bitcoin holdings, which is reflected in the rising Realized Profit/Loss Ratio. This metric, which measures the profits of coins moved on- chain, has increased over the past 10 days after recovering from negative territory.

Historically, an increase in this ratio has often preceded corrections, as it indicates that investors are taking profits rather than holding onto positions to increase their gains. An increase in realized profits signals selling pressure in the market. This behavior has the potential to slow or even reverse the momentum needed for Bitcoin to reach new highs.

Bitcoin’s macro momentum is also facing challenges. The Fear and Greed Index, a measure of market sentiment, recently crossed into greed territory. As Bitcoin’s price rises, many investors are motivated by the desire to take profits rather than continue to HODL and support further price increases. This shift in sentiment to greed could lead to increased selling pressure.

When the market is too greedy, it often leads to a correction as investors start to sell off their assets. This greed-driven behavior is a major factor in Bitcoin's inability to sustain its bullish momentum, as it creates a self-fulfilling cycle of selling pressure that prevents the cryptocurrency from reaching new highs.

BTC Price Prediction : Falling

Bitcoin is currently trading at $62,623, struggling to break above a key resistance level at $63,724. The breakout will not be confirmed until BTC can hold $65,000 as support, making the expected 35% rally to $80,000 uncertain.

Given the current market conditions, Bitcoin could face a potential drop below $61,846, which could result in a loss of the $60,000 support level. This would delay the expected rally.

However, if Bitcoin overcomes the downward pressure and holds $65,000, it could trigger a significant rally. Confirming the pattern with a 35% increase would create a new all-time high, with the highest BTC could reach being $68,500 but still refuting the bearish thesis.

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