Understanding Bitcoin Key Support and Resistance Levels
Bitcoin (BTC) has recently shifted from a bullish to a bearish sentiment after breaking down from a four-month price range. As a crypto enthusiast, it is crucial to monitor the key support and resistance levels to make informed decisions. Let’s delve deeper into the on-chain data to identify these critical levels.
Bitcoin On-Chain Data Analysis
- On July 6, Finbold collected on-chain data from IntoTheBlock to identify essential levels for cryptocurrency traders and investors.
- The “In/Out of the Money Around Price” metric indicates substantial support and resistance levels based on address activity.
Support Levels Analysis
- The largest volume of support is observed between $54,810 and $56,478, with an average at $55,594.
- 747,150 addresses purchased over 569,720 BTC at these prices, currently in profit.
Resistance Levels Analysis
- Strong resistance is noted between $59,885 and $61,553, with an average at $60,875.
- 1.04 million addresses hold 584,250 BTC volume at these levels.
Key Support and Resistance Levels
Based on the data analysis, the following key support and resistance levels should be closely monitored:
- Support levels at $50,000, $55,594, and $60,000.
- Resistance levels at $62,700 and $65,000.
It is essential to remember that cryptocurrencies are highly volatile assets, and market indicators should be used cautiously.
Hot Take
By keeping a close eye on Bitcoin’s key support and resistance levels, you can make informed decisions in the volatile cryptocurrency market. Stay updated with the latest data and trends to navigate the digital asset landscape effectively.
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