Bitcoin URPD Suggests $47,360 Holds Next Major Resistance After $38,500
An analyst has outlined a potential target for Bitcoin if it can overcome the current resistance at $38,500. According to the analyst, the next major resistance level for Bitcoin is $47,360. This analysis is based on the UTXO Realized Price Distribution (URPD), which provides insights into the levels where investors acquired their coins in the past.
Understanding Investor Psychology
The acquisition price of Bitcoin is important to holders, and when the price approaches that level, they may take action based on their profitability status. Those in profits may buy more, anticipating further gains, while those in losses may exit to avoid further losses. These reactions from investors can create support or resistance levels for the asset’s price.
Relevant Levels for BTC
Only levels with a significant number of investors are relevant for Bitcoin. A few users making buy or sell moves won’t have a meaningful impact on the price. The URPD chart reveals the major centers of holder cost basis.
Potential Breakout above $38,500
If Bitcoin successfully clears the resistance at $38,500, it could potentially rally towards the next resistance level at $47,000. The chart suggests that above $47,000 is where the next significant boundary lies.
BTC Price
Currently, Bitcoin has retraced towards the $37,000 level. However, based on the on-chain data and analysis mentioned earlier, this level should provide support for the cryptocurrency.
Hot Take: Bitcoin Eyes $47,360 as Next Major Resistance
An analyst predicts that if Bitcoin manages to surpass the $38,500 resistance, it could target $47,360 as its next major hurdle. This analysis is based on the UTXO Realized Price Distribution (URPD), which reveals key levels where investors acquired their coins. Investor psychology plays a role in determining support and resistance levels, with holders reacting based on their profitability status. Only levels with a significant number of investors are relevant to Bitcoin’s price movements. Currently, Bitcoin is retracing towards $37,000, but the on-chain data suggests that this level should provide support for the cryptocurrency.
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