As a seasoned crypto investor with several years of experience under my belt, I’ve learned to keep a close eye on critical supply zones when it comes to Bitcoin. These areas can significantly impact price movements and are often the deciding factor between bullish trends and temporary setbacks.
With Bitcoin hovering close to the $70,000 mark, analysts keep a keen eye on a significant supply area for the leading cryptocurrency. This zone holds importance as a considerable amount of Bitcoin was previously purchased within this price range.
As a researcher studying the cryptocurrency market, I’ve come across an important level of resistance for Bitcoin. Specifically, between $70,180 and $70,600, there are over 450,000 addresses holding around 273,000 BTC in total.
As a crypto investor, I’m excited to note that Bitcoin is encountering only minimal resistance as it continues its upward trend. A crucial supply zone to keep an eye on lies between $70,180 and $70,600, where approximately 450,000 addresses hold around 273,000 Bitcoins. With robust support levels in place, the bulls have a favorable position in this market scenario.
— Ali (@ali_charts) May 22, 2024
As a researcher studying Bitcoin price patterns, I’ve discovered that a supply zone holds significant significance on the chart. This area often serves as a hindrance to further price increases due to its historical role as a region where a substantial amount of Bitcoin was previously acquired. Owners in this zone may choose to sell their holdings to cover losses or secure profits, resulting in an influx of supply that could put downward pressure on the price.
Bitcoin has experienced a robust recovery since hitting a low of $56,500 in May. It peaked at $71,980 on May 21 but met resistance at this level. Currently, Bitcoin is continuing its downtrend from the previous day, losing 1.91% or around $1,000, to trade at $69,998.
Potential scenarios
As Bitcoin approaches the highlighted critical supply zone, several scenarios could unfold:
If Bitcoin surpasses the $70,600 mark with substantial trading activity, this could be indicative of a persistent uptrend. Such an occurrence might entice further investors, causing the cost to escalate even further and possibly setting a fresh foundation for future price support.
If Bitcoin encounters substantial selling forces within this price range, it might trigger a price reversal followed by a retreat. This situation could signal that numerous investors are looking to cash out, creating a short-term barrier to further advancement.
An alternative scenario is that Bitcoin remains stable around current levels, indicating equilibrium between market bulls and bears before a significant price shift occurs.
When contemplating its future direction, the Bitcoin market will keep a keen eye on price trends near the $70,000 threshold. This is due to the substantial amount of Bitcoin that has been amassed in this region.
According to MVRV pricing bands, Ali expects Bitcoin to reach a local peak near $77,593 in the upcoming price action if it maintains its current value above $65,125.
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2024-05-22 17:17