TLDR
- Bitcoin price climbed from $74,450 to $94,900 in April, rewarding long-term investors with $26B in gains
- The 30% correction between January-April matches historical Bitcoin cycle patterns
- Technical analysis shows Bitcoin broke out of a four-month falling wedge pattern
- Key support zones now exist at $88,750-$90,500 with resistance at $100,000 and $107,000
- Short-term traders sold at losses while long-term holders maintained their positions
The Bitcoin market is showing strong recovery signs as the price surged toward the $95,000 level in late April. Data from market analytics firm CryptoQuant reveals that Bitcoin’s long-term holders have seen their collective wealth increase by $26 billion as the cryptocurrency rebounded from its early April lows.
The long-term holder realized market cap jumped from $345 billion to $371 billion between April 1 and April 23. This wealth boost coincided with Bitcoin’s price movement from $74,450 to $94,900 during the same period.
The recent price action follows what many analysts describe as a typical market pattern. Bitcoin underwent a 30% correction between January and early April, which aligns with historical cycles observed in 2013, 2017, and 2021.
These corrections typically occur after Bitcoin reaches new all-time highs. They serve to remove speculators and distribute coins from short-term traders to those with stronger conviction in the asset’s long-term value.
Holder Behavior Patterns
The data shows clear differences in behavior between investor groups during the correction phase. Long-term holders largely maintained their positions, while short-term holders frequently sold at losses in early April.
This transfer of Bitcoin from impatient to patient investors has been a recurring theme throughout 2024. Many market observers view this pattern as a healthy redistribution that often precedes new bull market phases.
The total supply of Bitcoin currently in profit has increased above what analysts term the “threshold of optimism.” According to on-chain data, 16.7 million BTC spread across various addresses are currently in profit.
Past market cycles from 2016, 2020, and early 2024 demonstrate that when Bitcoin consistently holds above this key zone, major price rallies often follow within months.
Technical Picture Brightens
Bitcoin’s technical outlook has improved after breaking out of a four-month falling wedge pattern in early April. The cryptocurrency closed decisively above its 200-day moving average in Tuesday’s trading session, though trading volumes remained relatively light.
The relative strength index (RSI) currently shows bullish momentum with readings above the 50 threshold. The indicator remains below overbought territory, suggesting room for further upward movement.
Market analysts now identify several key price levels for traders to watch. The psychological $100,000 mark represents the first major resistance area, connecting price action from November through February on the charts.
A successful close above this level could see prices target $107,000, near the previous all-time highs set in December and January. This target also aligns with the measured move projection from the falling wedge breakout pattern.
On the downside, initial support exists around $85,000, near this month’s breakout point. A deeper pullback might test the $76,000 level, which connects with a trendline from April’s swing low.
Market Catalysts
The recent Bitcoin price recovery coincides with broader market optimism. Risk assets have rallied amid news that the White House may reduce planned tariffs. President Trump stated the levy on China will be “substantially” below its current 145% level.
Market sentiment also improved after the president walked back earlier comments about potentially firing Federal Reserve Chair Jerome Powell. This reassured investors about central bank independence.
Though Bitcoin remains below its January peak of $109,000, it has recovered approximately 25% from its 2025 low set in early April. Some investors appear to be turning to Bitcoin as an alternative to volatile equities and a weakening U.S. dollar.
From a short-term perspective, analysts expect Bitcoin may trade in a consolidation range between $94,900 and $88,750 in the coming days. The 4-hour chart shows key support between $90,500 and $88,750, representing a fair value gap in recent price action.
A break below this range could invalidate the lower timeframe bullish structure. This might push prices toward the next support zone between $84,000 and $86,300, where Bitcoin previously consolidated for a week before its recent breakout.
With Bitcoin trading recently around $93,500, the closely watched $100,000 level is now back within striking distance. Many market participants are focusing on whether this psychological barrier can be broken in the coming weeks.
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