Bitcoin’s Strong Support Range
An analyst has explained that if Bitcoin loses its strong support range below the current price, a decline to $30,220 or below could occur.
Analyzing On-Chain Support
An analyst named Ali has discussed how Bitcoin is currently floating above a strong on-chain support wall. The strength of a support or resistance level lies in the density of coins acquired at that level.
To see the various price ranges in terms of the Bitcoin acquired, Ali has cited the “UTXO Realized Price Distribution” (URPD) from Glassnode.
Price Levels with High Density
The URPD chart shows that the price levels between $42,560 and $43,245 hold the cost basis of a large amount of UTXOs. This range saw investors acquire a total of 1.11 million BTC.
Bitcoin is currently above this range, meaning that holders with their cost basis inside it would be in profit.
Retesting Cost Basis
Holders with their cost basis in the range are more likely to accumulate further if the price retests their cost basis. This can provide support to Bitcoin and prevent major downswings.
No Significant Resistance Ahead
If Bitcoin holds above the $42,560 to $43,245 range, there is not much significant resistance ahead. There aren’t any large supply blocks at upcoming ranges.
Possible Downswing
If the $42,560 to $43,245 range fails to hold, there could be a downswing to the next critical area of interest between $26,770 and $30,220. This would mean a drawdown of over 32% for Bitcoin.
Bitcoin Price Surge
Bitcoin has experienced a strong surge and is currently challenging the $45,000 level.
Hot Take: Bitcoin’s Support Range and Potential Downswing
An analyst has highlighted the importance of Bitcoin’s strong support range between $42,560 and $43,245. If this range fails to hold, there is a possibility of a significant downswing to the next critical area of interest between $26,770 and $30,220. This could result in a drawdown of over 32% for Bitcoin. However, if Bitcoin can maintain its position above the support range, it is expected to face little resistance ahead. The current surge in price indicates bullish momentum for the cryptocurrency.
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