Analyst Pinpoints Critical Support Zone For Bitcoin
June 15 2024 - 2:00PM
NEWSBTC
According to data from CoinMarketCap, Bitcoin has had an
unimpressive week with its market price falling by 4.65% over the
last seven days. However, prominent crypto analyst Ali Martinez has
released a price alert indicating that the market leader could be
set for more losses if it fails to secure a certain support zone.
Related Reading: Bitcoin Crashes To $65,000, Expert Unpacks Drivers
Of Crypto Market Bloodbath Bitcoin URPD Chart Shows Potential
Correction – Analyst In an X post on June 15, Martinez stated that
Bitcoin needs to quickly rise above $66,254 else it risks a
potential decline to around the $61,100 price mark. Martinez based
his theory on the UTXO Realized Price Distribution (URPD) chart
generated by the data analytics platform Glassnode. #Bitcoin needs
to climb back above $66,254 quickly to avoid a potential correction
down to $61,100! pic.twitter.com/WMr7jcAVJU — Ali (@ali_charts)
June 14, 2024 For context, an unspent transaction output
(UTXO) refers to units of Bitcoin that are unspent after a
transaction. Each UTXO has a realized price i.e. the price the
market price at the time of UTXO was transacted. In a UTXO
Realized Price Distribution chart, Bitcoin’s supply is broken down
based on the realized prices of UXTOs showing how much BTC was
acquired at different levels. This data can be used to study
market sentiment, distribution analysis as well as support and
resistance levels. More importantly, investor behavior can also be
studied as a high concentration of UTXOs indicates levels at which
most investors bought Bitcoin which can translate into a potential
resistance or support level. According to the URPD chart
shared by Martinez, 504,619 BTC was purchased at $66,254 thus
indicating a strong potential to serve as a support for Bitcoin
amidst its current downtrend. Furthermore, the next realized price
with the highest number of Bitcoin (191,366) bought is $61,101
representing the next support level should the premier
cryptocurrency fail to reclaim the $66,254 price mark. Related
Reading: Quiet Summer Ahead For Bitcoin, But Ethereum Holds
Potential for Surprise — QCP Capital Bitcoin Price Overview At the
time of writing, Bitcoin trades at $66,151 reflecting a price
decline of 1.15% in the last day. In tandem, the BTC’s daily
trading volume is also down by 5.54% and valued at $25.4 billion.
However, Bitcoin remains in the green on the monthly chart with a
5.80% gain which is a notable positive, especially for long-term
traders. According to Coincodex, the general sentiment is
bearish nevertheless, the fear and greed index stands at 74 which
indicates current optimism as well as risk-taking behavior among
investors which highlights a potential for high market volatility.
Featured image from BBC, chart from Tradingview
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