These Are The Biggest Bitcoin Support & Resistance Zones, Analyst Reveals
August 23 2024 - 5:00AM
NEWSBTC
An analyst has revealed the Bitcoin price zones that could act as
major support and resistance centers for the cryptocurrency. A
Large Number Of Investors Bought Bitcoin Inside These Zones In a
new post on X, CryptoQuant author IT Tech has discussed the Bitcoin
price levels that could act as support and resistance for BTC. In
on-chain analysis, the potential for any price level to behave in
this manner lies in the amount of tokens purchased. Related
Reading: Aave Forms Sell Signal That Led To 27% Average Correction
Last 4 Times Below is the chart from the market intelligence
platform IntoTheBlock shared by the analyst, which shows how the
price ranges near the current one look in terms of the number of
coins that share their cost basis. In the graph, the size of the
dot corresponds to the number of coins purchased at the price
range. The dots of two ranges stand out: $59,160 to $60,973 and
$64,670 to $66,483. Bitcoin had been just above the first of these
ranges when the analyst made the post, but now the coin has dipped
into it, meaning it’s retesting the zone. To any investor, their
cost basis is naturally an important level, so they may be more
likely to make some move when the cryptocurrency’s price retests
it. When many holders share their cost basis inside the same narrow
range, this reaction can emerge on a scale that can affect the
market. Almost 1.7 million addresses purchased 965,239 BTC inside
the $59,160 to $60,973 range, and after the pullback in the price,
these holders would be sitting at their break-even. Generally, when
the asset retests an investor’s cost basis from above, they are
probably to react by buying more, as they could believe the asset
would go up again to put them in profits. The coin can
naturally feel support when this reaction is produced on an
appreciable scale. As the range at hand is quite large, the analyst
has called it the biggest support zone for Bitcoin. Since BTC is
retesting it now, it remains to be seen whether investors would
truly step in and buy the “dip.” If BTC feels support and finds a
rebound, it will have to retest the resistance levels ahead. As
mentioned before, the $64,670 to $66,483 range is host to the
acquisition level of many coins. Related Reading: Bitcoin Investors
Be Warned: Legendary MVRV Ratio About To Death Cross Holders at a
loss may look forward to a retest of their cost basis to exit at
their break-even and regain the entirety of their capital. So,
large demand zones can provide resistance when Bitcoin retests them
from below. The $64,670 to $66,483 range could prove a significant
challenge for the cryptocurrency because of this. BTC Price At the
time of writing, Bitcoin is trading at around $60,200, up 1% over
the past week. Featured image from Dall-E, IntoTheBlock.com, chart
from TradingView.com
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