• Bitcoin’s price has been bearish since late April 2021 and is now testing an important support level near $26,800.
• Investor sentiment has shifted from dejection to hope and optimism due to the strong gains in January and March.
• The Network Ultimate Profit/Loss (NUPL) metric suggests that the network as a whole is currently in a state of profit.

Bitcoin Price Structure

The bullish breaker on the south of Bitcoin’s price charts was likely to be tested soon, offering long-term buyers an opportunity to enter the markets. The market structure had been bearish since late April after failing to breach the $30k mark. Investors noted a rise in paper gains as sentiment shifted towards hope.

Support Zone

The fall below $26,800 handed power to the bears. To the south, a bullish breaker block (cyan) sat between $24k-$25k on the 1-day timeframe which could offer significant support should BTC test it. This zone also had confluence with both the $25.2k and $24.3k levels making it highly significant for investors looking for entry points into this market or those looking for areas of support if prices continue downwards over time.

Overheating Network

A recent report indicated that the downturn in prices may have been due to an overheating network which lead to weaker demand from investors causing prices to drop lower than expected despite strong buying activity during mid-April 2021 when BTC rallied significantly before falling once again some weeks later.

Technical Indicators

Looking at technical indicators such as Relative Strength Index (RSI) and On Balance Volume (OBV), we can see that RSI was below neutral 50 whilst OBV was flat indicating that buyer demand remained stable despite price declines throughout May 2021 when compared with average figures from earlier months this year suggesting that buyers still remain interested in investing but at more favourable prices compared with those seen during early 2021 when BTC hit all-time highs above $60K per coin..

Network Ultimate Profit/Loss

Finally, looking at NUPL values we can see that investor sentiment has moved away from dejection experienced during November & December 2022 towards optimism seen in January 2023 when BTC rallied strongly before entering its current bearish trend over recent weeks leading up until today’s date May 26th 2023 where BTC is now trading just above $26K per coin according to CoinMarketCap data tracking various exchanges across the globe