Crypto analytics company Glassnode has identified a critical resistance threshold for Bitcoin BTC/USD amidst its downward trend, with the cryptocurrency having dipped to levels around $36,000 on Friday.
Why It Matters: Glassnode warns that Bitcoin’s transaction data shows $30,000 as a key support level, which, if BTC reaches it, could lead to a significant sell-off in the market.
The firm’s dissection of Bitcoin’s Realized Price Distribution points to a bulk of Bitcoin accumulation between $25,000 and $31,000 levels.
"We can see a significant accumulation of coins between $25,000 and $31,000, suggesting a strong support zone around the $30,000 mark," the analytics firm said. "This is the zone that was dominated by short-term holders, where we saw a bulk of this new demand enter the market, and now that the price is around 20% higher than the cost basis of this cluster, at least some of these investors are more likely to accumulate into their cost basis, rather than sell should these levels be retested."
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Why It Matters: The analyst firm added, “For traders, this $30,000 to $31,000 range is crucial as it's really the battleground between recent gains and the largest supply cluster and any drop below this could really trigger some sell-offs. So it's definitely worth keeping a close eye on this level for potential buy or sell signals."
Meanwhile, pseudonymous crypto analyst Kaleo predicted that Bitcoin will reach $80,000 in the post-halving surge.
In a post shared on Wednesday, Kaleo said, "Bitcoin Price discovery is a magnet. The chart below details price action similarities from the 2020 covid capitulation wick recovery that led to the 2021 bull market to the current price action and how the market has trended since the FTX capitulation event. In this thread, I'll outline more from my Halving Reward Era price analysis theory detailing where I believe we're heading over the next two years."
Price Action: At the time of writing, BTC was trading at $36,402.19, down 3.21% in the last 24 hours, according to Benzinga Pro.
Image via Shutterstock
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