Bitcoin's Bull Market Threshold Beckons Just $4,900 Away

Bitcoin's price has been hovering near $76,808, down 0.2% in 24 hours, but analysts believe it's just $4,900 away from a bull market according to CryptoQuant.

CryptoQuant flags the level at $81,700 as the average closing price of the past year, and if Bitcoin were to reach this point, it would mark the beginning of a new bull market. However, two groups of large holders are currently selling into one zone: whales who sold coins during the recent two-week rally and long-term holders who released up to 539,000 BTC within the resistance band between $77,100 and $80,200.

Additionally, US institutions did not participate in the current rally, as evidenced by a negative Coinbase Premium, which shows that Bitcoin trades more cheaply on the main US exchange than offshore. This raises the question of who would buy into a breakout when both groups of large holders are selling and US funds sit it out.

CryptoQuant's analyst GugaOnChain pointed out that 'the stage is set for a Long Squeeze', which forces traders who borrowed to bet on gains to sell, pushing prices down further. Meanwhile, CryptoQuant's September 11 report identified the nearest resistance between $77,100 and $80,200 as a key area where trader profit-taking has historically emerged.