Glassnode Identifies Key Price Range as Critical Support for Bitcoin Bulls
Glassnode’s report highlights a critical Bitcoin price range ($70,000-$92,000) for bulls, backed by key metrics like UTXO Realized Price Distribution and Active Realized Price. These indicators suggest that this level may serve as a defense line amidst potential market capitulation. As of now, Bitcoin is trading around $90,000, reflecting a weekly increase of nearly 5%.
A report issued by the on-chain analytics firm Glassnode has identified a specific Bitcoin price range that may serve as a pivotal point for bulls. This analysis emphasizes several Bitcoin metrics converging on this critical price level, potentially indicating it as a defense line for bullish investors.
The first metric discussed is the “UTXO Realized Price Distribution” (URPD). This indicator illuminates how Bitcoin supply is allocated at various price levels, based on preceding transaction values. Prior to recent market declines, a negligible quantity of Bitcoins had a cost basis between $70,000 and $92,000. This pricing gap signifies limited demand, explaining the ease with which Bitcoin price descended into this range during the crash. However, bulls have responded with buying activity in the region, subsequently altering the URPD to enhance support potential.
Another critical metric examined by Glassnode is the Realized Price for short-term holders, who are defined as Bitcoin purchasers within the previous 155 days. Historical data indicates that the Short-Term Holder cost basis has served as a significant reference during bullish market trends. Presently, the lower bound of the Short-Term Holder Realized Price is approximately $71,000, aligning with the previous air-gap price level noted.
Additionally, the Active Realized Price metric, which reflects the Realized Price of economically circulating BTC, currently stands at $70,000. This value is consistent with both prior metrics, further emphasizing the importance of this price range. The report concludes that convergence among several critical cost basis metrics designates this price region as potentially the final defense line for bulls, particularly if the market faces significant capitulation.
At the time of publication, Bitcoin is trading near $90,000, reflecting an increase of nearly 5% over the last week.
In conclusion, the report from Glassnode underscores the significance of the Bitcoin price range between $70,000 and $92,000, indicating it could be crucial for bullish investors. With aligned metrics such as the UTXO Realized Price Distribution and the Active Realized Price, this area is perceived as a potential defense line against market downturns. Current trading activity supports this observation, with Bitcoin showing resilience by maintaining a trading value of approximately $90,000 and increasing weekly.
Original Source: www.tradingview.com
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