Bitcoin Slips Under $64,000: Here’s Where The Next Support Is
June 21 2024 - 7:00PM
NEWSBTC
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 According to data from the
market intelligence platform IntoTheBlock, BTC is floating just
above a critical on-chain demand zone. Demand zones refer to price
ranges where many investors last bought their coins. These ranges
can be determined through on-chain analysis, as the average cost
basis of each address on the network can be readily calculated
through its transaction history. Related Reading: PEPE Has 80% Of
Holders In Profit: How It Compares To DOGE & BTC Below is the
chart shared by the analytics firm that shows the various price
ranges near the current asset price in terms of the present demand.
In the graph, the size of the dot corresponds to the number of
addresses bought inside the respective range. It appears that
Bitcoin currently has large demand zones both just above and below
itself. According to IntoTheBlock data, the lower range currently
holds the cost basis of around 1.23 million addresses for investors
who bought 319,700 BTC. Now, what’s the relevance of a demand zone
like this? To any investor, their cost basis is important, so when
the price tests it, they may become more prone to making some move.
Naturally, if many holders share their break-even level inside a
narrow range, the reaction resulting from a retest would also be
large. Because of this reason, zones of major demand are considered
to be important support or resistance levels for Bitcoin. Cost
basis centers above the price can act as resistance walls, while
those below can provide support cushions. Since BTC is hovering
just above a major demand zone between $61,900 and $63,800 after
its latest decline, it’s possible that the range could help the
asset reach a bottom. As for the source of the support or
resistance effect provided by these demand zones, the answer lies
in investor psychology. The holders currently in loss may be
looking forward to the price hitting their cost basis to exit with
their initial investment. This selling that may appear upon a
retest of many investors’ shared break-even level can pose
resistance to BTC. Similarly, the investors below can react to a
retest by buying more, as they could look at the drop as a dip
opportunity, thus supporting the asset. Related Reading:
IntoTheBlock Reveals Fact About Current Bitcoin Situation Analysts
Are Puzzled By 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 After the latest drawdown,
Bitcoin has just entered into the on-chain demand zone, as its
price is now trading around $63,600. Featured image from Dall-E,
IntoTheBlock.com, chart from TradingView.com
Pepe (COIN:PEPEUSD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Pepe (COIN:PEPEUSD)
Historical Stock Chart
From Oct 2023 to Oct 2024