Bitcoin Faces Resistance Below $60,000 Support
Bitcoin (BTC) has once again plunged below the critical $60,000 support level this year following external economic factors and concerns about a potential recession. The recent negative price movement has resulted in significant resistance for BTC, with numerous selling walls that the cryptocurrency must navigate to climb back above $70,000.
Identifying Potential Selling Walls for Bitcoin
Using data from IntoTheBlock, nearly 4.15 million BTC have been identified as potential selling walls at various price ranges above $60,842, totaling over $242.75 billion. These selling walls are distributed across different price levels, including:
- 267,180 BTC from $58,798 to $60,538, averaging $59,814
- 552,230 BTC from $60,538 to $62,278, averaging $61,464
- 549,010 BTC from $62,278 to $64,018, averaging $63,215
- 1.07 million BTC from $64,018 to $65,830, averaging $64,882
- 850,400 BTC from $65,830 to $67,643, averaging $66,743
- 868,660 BTC from $68,150 to $70,035, averaging $69,041
Bitcoin MVRV Indicates a Potential Bottom
On the flip side, the buying interest in Bitcoin appears to be lower compared to the selling pressure. The Market Value to Realized Value (MVRV) ratio, a key on-chain indicator, suggests a potential turning point. Data from Santiment shows that the 365-day MVRV ratio indicates a possible decrease in selling pressure at current price levels.
The MVRV ratio assesses the profitability of BTC purchases made in the last year at the current price. A higher ratio implies a greater likelihood of selling, while a lower ratio indicates potential holding for better opportunities. As of now, Bitcoin is trading at $58,900 with a 3.5% 365-day MVRV ratio.
Factors Influencing Bitcoin’s Price Movement
The future price movement of Bitcoin depends on various factors, including macroeconomic uncertainties and overall market sentiment. Cryptocurrencies are particularly susceptible to speculation, necessitating caution among traders and investors.
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