Bitcoin price rally 'in progress' but upside could be capped at $84K

CointelegraphApr 213 min readOriginal source →

TL;DR

Bitcoin's price has rallied to $78,000, indicating the start of an uptrend, but analysts warn that gains may be limited to $84,000 due to resistance levels.

Key points

Bitcoin price reached $78,000
Analysts say uptrend has begun
Potential resistance at $84,000
Profitability metrics suggest a real rally

Market analysts said Bitcoin’s (BTC) latest rally to $78,000 means that the “uptrend has began,” but the upside could be capped at $84,000, based on several key metrics.

Key takeaways:

Bitcoin profitability metrics say that BTC has entered the early stages of a “real rally.”
BTC price recovery may face stiff resistance at $84,000, with a pullback likely.

Bitcoin profitability suggests BTC rally “has begun”

Bitcoin’s recent price recovery toward $76,000 has pushed it more than 26% above its sub-$60,000 multi-year low reached on Feb. 6.

This was accompanied by an increase in the Spent Output Profit Ratio (SOPR), which hit an eight-month high of 2.87, after dropping as low as 0.62 in early February.

SOPR is a metric used to show whether Bitcoin investors have made a profit or loss compared to when they first held Bitcoin. This ratio has historically marked the short-term bottom for BTC when it hits its lowest point.

“The $BTC SOPR Ratio shows that $BTC has already broken out of the bottom and is rising,” CryptoQuant analyst CW8900 said in a Tuesday post on X, adding:

“The bottom for $BTC was formed last February. The rally is already in progress.”

Bitcoin SOPR. Source: CryptoQuant

Similarly, Bitcoin’s Net Unrealized Profit/Loss (NUPL), the difference between total profits and losses currently held by investors, has flipped positive for the first time since early January.

This suggests that the downtrend for Bitcoin has ended, and the “real rally of this cycle has begun,” CW8900 in another X post.