Bitcoin Support and Resistance Levels Analysis for Crypto Traders
Bitcoin (BTC) is currently trading around $69,000, below the crucial $70,000 psychological level. Cryptocurrency traders are closely monitoring support and resistance levels for potential insights in the ever-volatile market. By utilizing on-chain data, traders can identify key price ranges with buying or selling pressure. In this case, IntoTheBlock offers valuable data on Bitcoin volume that is either profitable or facing losses.
Identifying Support Levels Based on On-Chain Data
- 614,250 BTC held by 1.14 million addresses creates a support zone between $66,555 and $68,585, averaging $67,578 per Bitcoin.
- This accumulation suggests that investors who bought at these levels are currently in profit and likely to support Bitcoin at these prices.
- However, selling pressure is evident at the $69,891 average price, forming a potential resistance zone.
- 679,630 BTC are at a loss between $69,383 and $70,108, indicating a strong likelihood of selling to break even.
Bitcoin Support and Resistance Price Analysis
Notably, the on-chain support zone aligns with technical analysis support at $68,500, coinciding with the lower limit of the trading range. Despite a brief dip, Bitcoin quickly rebounded, confirming the expected buying pressure within the profitable volume range.
Investors should monitor these levels closely as they could influence Bitcoin’s trading range and provide crucial buy or sell signals. Currently trading at $69,283, a breakout above this level could test the range’s upper limit at $71,500.
Hot Take: Predicting Bitcoin’s Future Price Movements
For crypto traders, understanding Bitcoin’s support and resistance levels is essential for making informed trading decisions. By analyzing on-chain data and technical indicators, you can anticipate potential price movements and adapt your trading strategy accordingly. Keep an eye on these key levels and market trends to stay ahead in the fast-paced world of cryptocurrency trading.
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