Bitcoin Price Slips Under $84,000 — Key Support Levels To Watch
Bitcoin priced around $83,800 has dropped below $84,000 after strong performance, raising concerns among investors regarding further corrections. Key support levels are identified at $84,100, $82,090, and $80,920, with deeper risks at $74,000 and $71,000. Blockchain analytics firm Glassnode provided insights into investor behavior influencing these price dynamics.
In recent weeks, Bitcoin demonstrated remarkable resilience, rallying above $88,000. However, on March 28, it faced a sharp correction, dropping below $84,000 following the release of February’s core inflation data. This decline has incited anxiety among investors, raising concerns about potential further decreases in the price of the world’s leading cryptocurrency.
Recent insights from blockchain analytics firm Glassnode indicate a cautious outlook for Bitcoin’s price action. They highlighted the significance of cost basis distribution data, which reveals the total Bitcoin supply held by addresses at different average price points. Notably, the chart illustrates how many traders purchased at the $78,000 level but subsequently sold during the recent peak of $87,000, thereby weakening the support around those levels.
Key support zones for Bitcoin are identified at approximately $84,100, $82,090, and $80,920, corresponding to where significant quantities of BTC were purchased. Nevertheless, should the price falter below these levels, it could lead to more profound corrections, with $78,000 potentially lacking strong support after recent sell-offs.
If Bitcoin descends further, analysts posit that it may drop to $74,000, which is supported by 49,000 BTC purchased, followed by another critical level at $71,000, where 41,000 BTC was bought. These levels represent areas where investor conviction remains, holding the potential to mitigate additional downward pressure on the market.
In summary, Bitcoin’s recent decline below $84,000 amidst market uncertainty reflects investors’ apprehensions about further price corrections. Key support levels at $84,100, $82,090, and $80,920 warrant watchfulness, as a breach could signal deeper drops down to $74,000 and $71,000. Ongoing analysis from reputable sources like Glassnode emphasizes the importance of understanding investor behavior and market dynamics to navigate potential challenges ahead.
Original Source: www.tradingview.com
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