Bitcoin has continued its recent bearish trajectory during the past day as the asset’s price has now slipped under $64,000. Here’s what the next support looks like for BTC.
Bitcoin Has Strong On-Chain Support Between $61,900 & $63,800
Market intelligence data shows that the number of people using market intelligence platforms has increased. IntoTheBlockBTC is hovering just over a key on-chain zone of demand. Demand zones are price bands where investors have bought coins in the past.
The average can be used to determine these ranges. cost basis The transaction history of each network address can easily be calculated.
This chart, which was shared by the firm of analysts, illustrates the different price ranges that are near to the current asset value in terms the demand.
On the graph, you can see that the dots correspond to the total number of transactions within each range. Bitcoin has large areas of demand just above and beneath itself.
According to IntoTheBlock’s data, around 1.23 millions addresses are currently based on the lower price range for investors that bought 319.700 BTC. Now, what’s the relevance of a demand zone like this?
Investors may be more likely to act if the price tests their cost base. It is only natural that if many people share their breakeven levels within a limited range, the subsequent reaction from a new test will also be significant.
Bitcoin’s support or resistance levels are therefore based on zones of high demand. The cost basis centers that are above or below the current price of Bitcoin can be used as support and resistance levels.
BTC hovers just below a demand zone of $61,900 to $63,800. latest decline, it’s possible that the range could help the asset reach a bottom.
Investor psychology can explain the reason for these support zones or resistance zones. Investors in losses may look forward to the moment when their original investment will be worth what they paid for it.
This selling that may appear upon a retest of many investors’ shared break-even level can pose resistance to BTC. Investors below could also react by purchasing more in response to the retest, as they may see the dip as an opportunity and support the asset.
It now remains to be seen if the support zone between $61,900 and $63,800 would put an end to Bitcoin’s recent bearish momentum or not.
BTC Price
Bitcoin’s price has now reached $63,600, after the recent drawdown.
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Source: www.newsbtc.com
