Over Half a Million Bitcoin Addresses Hold Bitcoin at High Cost Basis
Analyst Ali has pointed out that there are over 500,000 Bitcoin addresses that bought Bitcoin at a cost basis between $70,180 and $71,340. These investors entered the market at a time when Bitcoin was trading at its recent high price levels. This suggests that many investors are currently experiencing losses due to the recent plunge in Bitcoinโs price.
The distribution of the BTC supply across different price ranges can be seen in the chart shared by Ali. The chart shows that there is a dense concentration of investors in the $64,743 to $66,700 range, which is below the current spot price of Bitcoin. This range could act as a major support level for the cryptocurrency.
However, if this support level is lost, the focus could shift to the next significant demand zone between $60,760 and $62,790. This zone is protected by 797,500 addresses holding over 298,000 BTC.
On the other hand, the $70,180 to $71,340 range stands out as a point of resistance for Bitcoin. A total of 533,330 addresses bought almost 433,000 BTC in this range. These buyers are likely individuals who FOMOโd (Fear Of Missing Out) into Bitcoin after seeing it reach new all-time highs.
It is important to monitor this range closely as these new buyers may sell quickly if there is a retest of their cost basis. They may be willing to exit at break-even to avoid further drops in the near future.
Bitcoin Price Correction
In the past day, Bitcoin has experienced a sharp correction and is currently trading around the $67,900 level. The chart below shows the recent price movement of Bitcoin:
[Insert Bitcoin Price Chart]Hot Take: Watch Out for Support and Resistance Levels
The recent plunge in Bitcoinโs price has left over 500,000 addresses holding Bitcoin at a cost basis between $70,180 and $71,340 in losses. These investors entered the market at high price levels and may be sensitive to retests of their cost basis.
Here are some key takeaways to keep in mind:
- Many hands share their cost basis inside the same narrow range, which can result in significant reactions when a retest occurs from above.
- The $64,743 to $66,700 range is dense with investors and could act as a major support center.
- If this support level is lost, the focus could shift to the next demand zone between $60,760 and $62,790.
- The $70,180 to $71,340 range is a point of resistance for Bitcoin, as many new buyers entered the market at these levels.
- These new buyers may sell quickly if there is a retest of their cost basis, potentially adding selling pressure to the market.
Keep an eye on these support and resistance levels as they can play a crucial role in determining the future price movement of Bitcoin.
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