Major Bitcoin Support and Resistance Levels Identified by Analyst
An analyst has disclosed significant Bitcoin price zones that may serve as critical support and resistance levels for the cryptocurrency market. In a recent post on the social media platform X, the author IT Tech from CryptoQuant conducted a detailed on-chain analysis to identify price levels where accumulation by investors has occurred, thereby indicating potential interaction with future price movements.
The analysis features a chart from IntoTheBlock, illustrating the correlation between Bitcoin’s current price range and the number of purchased tokens. The chart’s representation indicates that the sizes of the data points correlate with the respective quantities of Bitcoin acquired within specific price ranges. Two notable ranges have emerged: $59,160 to $60,973 and $64,670 to $66,483.
At the time of the analyst’s publication, Bitcoin’s price hovered just above the initial range, but it has since dipped into this zone, suggesting a potential retest. For investors, the cost basis—essentially the price at which they acquired their assets—constitutes a critical level. Such retests often prompt investor action, particularly when the price approaches a level where numerous holders have accumulated tokens. In this case, approximately 1.7 million addresses had purchased a total of 965,239 BTC within the $59,160 to $60,973 range. Following the recent price pullback, these investors would be at their break-even point, making this support zone particularly significant.
When an asset approaches an investor’s cost basis from an elevated position, it may prompt increased buying activity as these investors speculate on a subsequent price increase to achieve profitability. Consequently, substantial buying reactions in this range can foster a sense of support for the cryptocurrency.
The analyst has classified the $59,160 to $60,973 range as the most substantial support zone for Bitcoin. Presently, Bitcoin’s price is retesting this level, which raises questions about whether investors will capitalize on this dip opportunity. Should Bitcoin sustain its support and initiate a rebound, it will subsequently confront the upper resistance levels, notably identified within the $64,670 to $66,483 range. This zone represents the acquisition level for many holders, some of whom may look to recoup their losses by exiting positions at their cost basis, further complicating the price action dynamics.
In conclusion, as Bitcoin is currently trading at approximately $60,200, reflecting a modest increase of 1% over the previous week, stakeholders must remain vigilant. The market’s reaction at these critical support and resistance levels will provide valuable insights into future price movements as the cryptocurrency market continues to evolve.
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