Bitcoin On-Chain Support And Resistance Levels Could Provide Hints For What’s Next
An analyst has identified two demand zones that could play a significant role in Bitcoin’s future. These supply walls represent the amount of Bitcoin acquired at specific price ranges. The first zone is the cost basis, which is crucial because it can impact the profit-loss situation for holders when the price retests. If many addresses share their cost basis within a narrow range, it could result in a substantial reaction during a retest. Major supply walls, such as the two mentioned earlier, can serve as important retests for Bitcoin.
Investor psychology plays a role in these effects. Investors who were previously in profit may want to take another chance at that price range, leading to buying and support for the asset. Conversely, loss holders may sell when the price reaches their break-even point to avoid further risk. Bitcoin is currently trading between two major supply walls, and breaking beyond these bounds will determine its trend.
BTC Price
Bitcoin is currently trading around $42,700 as it continues its sideways movement. The chart indicates that the next significant resistance lies between $46,300 and $47,600, while the next major support is between $38,600 and $39,900. A breakout above resistance could push BTC towards $47,600, while a dip below support may lead to a correction down to $38,600.
Hot Take: Analyst Highlights Key Demand Zones for Bitcoin
An analyst has identified crucial demand zones for Bitcoin based on supply walls. These zones represent the amount of Bitcoin acquired at specific price ranges and can impact investor behavior during retests. Major supply walls serve as important levels for Bitcoin’s support or resistance. Breaking beyond these bounds will determine BTC’s trend. Currently trading around $42,700, Bitcoin faces significant resistance between $46,300 and $47,600 and major support between $38,600 and $39,900. A breakout or dip beyond these levels could indicate further price movements for the cryptocurrency.
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