If Bitcoin manages to overcome these resistance levels, it would signal the absorption of selling pressure and readiness for further recovery, the analyst suggested.

Meanwhile, researcher Darkfost noted that the 30-day moving average of the SOPR for short-term Bitcoin holders reached 0.997, indicating that the selling price of coins is nearing the breakeven point.

“Contrary to popular belief, it’s crucial to have a profit level in the market that’s attractive enough to encourage investors to hold or enter the market, but not too high. Let’s see if we can break through this zone now,” clarified Darkfost.

A similar situation was observed in January and May, the expert added.

At the time of writing, Bitcoin is trading at $65,200, having gained 4% over the past seven days.

In August, Glassnode analysts recorded a record-long phase of Bitcoin capitulation.

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