Bitcoin (BTC) market shows signs of a rebound despite headwinds

The digital asset market has shown signs of a rebound in the last seven days, although headwinds still limit the recovery.

The digital asset market has shown signs of a rebound in the last seven days, although headwinds still limit the recovery. The recent downturn crashed crypto prices and left lingering effects on new holders.

At the time of writing, Bitcoin’s price rose 2.7% in the past seven days to $87,526. Despite trading below the $100k mark, previous data might favor a turnaround with whale accumulations.

STH Unrealized Losses At 4%

A new CryptoQuant report shows that the short-term high remains negative following the downtrend in crypto prices. Short-term holders' realized price is now at $90,800, down 4% compared with the market value to realized value ratio.

This year, Bitcoin’s price nosedived from an all-time high above $108k to current levels. This loss of value has taken a toll on relatively new holders, weakening the broader sentiment. Bulls will face further resistance if present factors persist due to sell pressures.

This period was categorized with inflows to centralized exchanges and a reduction in miner reserves to hedge against losses.

"The short-term holders (coin held <155d) continue to face unrealized losses of around 4%, meaning the STH MVRV ratio is currently at 0.96. The MVRV (Market Value to Realized Value) ratio is an indicator that compares total market capitalization with realized capitalization. Realized capitalization represents the average purchase price."

Since the last bull phase, short-term holders' profit percentage failed to break 42%, ushering in a slight correction afterward. While this bear phase has consequences for market strength, a rebound could be in the cards. This typically occurs when the unrealized losses fluctuate between 9% and 17%.

Whales Target $95k Recovery

After the Bitcoin price slumped below the $80k mark, whales moved to buy the dip. Although institutional sentiments remained low, new movements triggered an upward trend. Last week, institutional investors reversed five weeks of losses, recording inflows of over $700 million.

New Glassnode data shows that Bitcoin whales have accumulated $11 billion worth of assets in the last 14 days. The purchase of 129,000 BTC has also spiked retail interest in the market after months of low activity. However, analysts opine that a $95k target can be sustained with easing macro tensions alongside whale purchases.

Altcoin bulls have also jumped on the opportunity to scoop assets ahead of a rebound.