In the last few weeks the price movement of Bitcoin was somewhat restricted as bulls and traders fought for market dominance. The price action of Bitcoin has been limited in the past few weeks as bulls and bears battle for dominance in the market.
The latest data on the blockchain indicates that the sideways movement of Bitcoin’s price may be due to an uneven distribution in the total amount. supply around various levels. This latest on-chain analysis has also determined the next possible stop for the price leader.
BTC Price At Risk Of A 20% Decline?
Darkfost posted a post on X’s platform dated December 13 by a pseudonymous researcher. explained This means that Bitcoin is currently locked in an intense battle between $93,000 and $89,000. The distribution of BTC (as measured by the URPD metric), around various price levels, is the basis for this on-chain analysis.
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The URPD metric (UTXO Actualized Price Distribution), tracks how much of a certain cryptocurrency was traded at a given price. A large number of coins are traded at one price, and the area tends to act as a support level when prices trade above that price or resistance when they do not.
According to Darkfost, this explains why the Bitcoin price seems stuck within the $89,000 – $93,000 region (the yellow area in the highlighted chart). According to the market analyst, this area has been a hotbed of activity. significant trading activityThe fluctuation of BTC prices within the range is justified.
What is new? “distribution gap” (blue area in the chart) in the $74,000 – $80,000 range, which represents a zone with relatively low historical trading activity. Darkfost explained these low-liquidity areas tend to bring the Bitcoin prices up in order to restore supply and demands.
As observed in the chart above, this distribution gap lies between the $74,000 – $80,000 range, meaning that the price of BTC could witness a correction to this level before bouncing back to a new high. The correction of this level would be equal to nearly a 20% decrease in the price.
Darkfost has also pointed out that 34% (of the BTC total supply) is currently above the $90,000.000 psychological threshold. In the long run, $90,000.000 could be a support level that helps to stabilize Bitcoin prices.
While a big distribution cluster is visible around $84,000 it shouldn’t be interpreted too literally. Darkfost said that while the distribution looks genuine, it is actually a product of Coinbase’s recent Bitcoin movement.
Bitcoin Price at a Glance
BTC is trading at approximately $90.150 as of the time of writing. There has been no notable change over the last 24 hours.
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Featured image is from iStock. Chart from TradingView
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Source: www.newsbtc.com
