Defx Insights

Tag: Bitcoin Bull Run

  • Bitcoin $90K Support Level Critical for Bull Run, Analyst Warns

    As Bitcoin continues to navigate the $100K territory, veteran market analyst Daan Crypto has identified a crucial support level that could determine the cryptocurrency’s next major move. In a detailed technical analysis shared on May 16, the expert highlights $90,000 as the make-or-break point for Bitcoin’s current bull structure.

    Bitcoin’s Current Market Position and Key Levels

    Bitcoin is currently trading at $103,509, showing signs of consolidation after stalling near the $104K level. The cryptocurrency has established a range-bound market between $101,000 and $105,000, with its all-time high of $109,000 serving as a significant psychological barrier.

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    The $90,000 Support Level: A Critical Technical Threshold

    According to Daan Crypto’s analysis, the $90,000 level represents a pivotal support zone that Bitcoin must maintain to preserve its bullish market structure. This level hasn’t been breached since mid-April, when BTC began its current upward trajectory. A break below this threshold could trigger a significant bearish reversal.

    US-China Trade Relations Impact on Bitcoin

    The recent 90-day pause in tariffs between the US and China has injected over $600 billion into global financial markets. While Bitcoin initially outperformed traditional markets, reaching nearly $106,000, its momentum has since slowed compared to conventional stock markets.

    Market Outlook and Trading Implications

    For Bitcoin to resume its bullish momentum, Daan Crypto emphasizes the importance of breaking above the current all-time high of $109,000. Without this breakthrough, the cryptocurrency may continue its consolidation phase. Technical patterns suggest a potential move toward $120K if the current support holds.

    FAQ Section

    What happens if Bitcoin breaks below $90,000?

    A break below $90,000 would signal a potential trend reversal and could trigger a significant downward price movement.

    How does the US-China trade deal affect Bitcoin?

    The trade deal has increased market liquidity and investor confidence, potentially supporting Bitcoin’s price stability above $100,000.

    What’s the next major resistance level for Bitcoin?

    The current all-time high of $109,000 represents the most significant resistance level that Bitcoin needs to overcome for continued upward momentum.

    At press time, Bitcoin maintains its position above $103,000, with market participants closely monitoring the critical $90,000 support level for signs of potential trend changes.

  • Bitcoin Bull Run Signal Missing: Binary CDD Shows Room for Growth

    A critical Bitcoin bull run indicator suggests the current rally may have significant room for growth, according to recent on-chain analysis. The Binary CDD (Coin Days Destroyed) metric, a key measure of long-term holder behavior, remains well below historical peak levels despite Bitcoin trading above $102,000.

    This analysis comes as JPMorgan predicts Bitcoin will outperform gold in 2025, adding further weight to the bullish outlook.

    Understanding the Binary CDD Indicator

    The Binary CDD serves as a sophisticated measure of long-term holder activity in the Bitcoin network. Currently sitting at 0.60, this metric remains notably below the 0.80 level seen during previous market tops, including both the 2021 bull run peak and last year’s rally highs.

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    Key Technical Insights

    The 30-day moving average of the Binary CDD reveals several critical insights:

    • Current reading: 0.60
    • Historical peak: 0.80
    • Previous bull run peaks: 0.80+
    • Upward trajectory maintained despite price increases

    Long-term Holder Behavior Analysis

    While long-term holders are showing remarkable resilience at current price levels, the Binary CDD suggests they haven’t yet reached the profit-taking behavior typically seen at market tops.

    Market Implications

    The current Binary CDD readings suggest:

    • Potential for continued price appreciation
    • Lower selling pressure compared to previous cycles
    • Healthy accumulation phase still in progress
    • Room for further institutional adoption

    FAQ Section

    What is the Binary CDD indicator?

    The Binary CDD is an on-chain metric that measures long-term holder activity, taking values of 0 or 1 based on whether current coin movement is above or below historical averages.

    Why is the current reading significant?

    At 0.60, the current reading suggests the market hasn’t reached the excessive profit-taking behavior typically seen at cycle tops.

    What does this mean for Bitcoin’s price?

    The indicator suggests potential for continued upward movement, as historical patterns show peaks typically occur when the Binary CDD reaches 0.80 or higher.

    Market Outlook

    Bitcoin currently trades at $102,300, showing a 3% increase over the past week. The Binary CDD data, combined with broader market metrics, suggests the potential for continued upward momentum in the current bull cycle.