BTC price surged with support fueled by the 2023 bull market.

Bitcoin (BTC) may see a respite from selling pressure as traders' profit margins hit “essentially zero”.

In an analysis posted on X (formerly Twitter) on April 18, Julio Moreno, head of research at on-chain analytics platform CryptoQuant, pointed to a turning point in Bitcoin's price decline.

Bitcoin traders reach for a line in the sand for profit margin

Bitcoin and crypto traders have been hit by a one-week drop in BTC prices, but a key reset is underway.

According to CryptoQuant data, traders have returned to the right point on exchange holdings of $60,000.

“The pressure from traders to sell Bitcoin may be waning as uncertain profit margins are essentially zero,” Moreno concluded.

The accompanying chart showed the profit/loss for short-term holders (STHs) – entities of Bitcoin who have held BTC for 155 days or less.

These speculations have effectively ended profitable businesses, which can now be reduced by selling without knowing the losses.

Moreno added:

“The Traders Confirmed Price (pink line) served as price support during the bull market and is now at ~$60k.”

So far, BTC/USD has experienced only one brief dip below $60,000 since it started breaking out of new all-time highs in March.

Cointelegraph reports that such pullbacks are a familiar phenomenon when all-time highs are broken, and this week's surprise new high BTC price correction, which comes ahead of the block subsidy, has raised expectations.

The price realized into STHs has made repeated lows, and the trend line has consistently bought the market since the end of the 2022 bear market.

BTC/USD traded below the STH price for only a brief period in August last year.

The price of BTC is temporarily increasing.

Meanwhile, Bitcoin saw relief on April 18 when it hit $64,182 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.

Related: $70K BTC Price Halving? 5 things to know in Bitcoin this week

“This is the -18% deep retracement that has now lasted for 10 days. Depth-wise, this is very close to a bargain buy zone based on the supports in this cycle (up to -23% deep).” And analyst Rect Capital observed on the day.

“Time-wise though, this is still one of the shortest returns in this cycle (currently just 10 days). Previous returns lasted 2-3 weeks and up to two months at most.

Fellow trader Skew points out that more evidence of demand for space is needed to be confident of a full recovery.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.