Bitcoin Holds Above $90K – On-Chain Data Reveals Key Demand Levels
Bitcoin recently retraced 9% from its all-time high of $99,800, narrowly missing the psychological milestone of $100,000. The pullback sent Bitcoin to a low of $90,700 on Tuesday, causing concern among some investors.
However, the price has since recovered, showing resilience as it moved back towards key resistance levels. Despite the volatility, Bitcoin’s long-term bullish structure remains intact and market sentiment is on the optimistic side.
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Top analyst Axel Adler has provided important on-chain insights suggesting that strong demand for Bitcoin remains at current levels.
Adler said this buying activity suggests investors view pullbacks as an opportunity to accumulate, underscoring confidence in Bitcoin’s potential for further growth. However, he also highlighted solid support at lower price levels, which could come into play if the current recovery fails to persist.
The next few days will be crucial as Bitcoin tests its ability to regain momentum and could potentially break the $100,000 mark. With demand remaining strong and market conditions likely to break out, all eyes are on whether BTC can maintain its upward trajectory or if further consolidation is imminent. The stage is set for a decisive move in Bitcoin price action.
Bitcoin data reveals investors’ entry prices
Bitcoin continues to exhibit extremely bullish price action, driven by growing demand from both institutional and retail investors. Key on-chain data from CryptoQuant analyst Axel Adler highlights key price dynamics shaping current markets.
Adler said Bitcoin’s price is currently consolidating within the average buying range of two major investor groups: 1D ($96,800) and 1D-1W ($95,300). These levels are key areas of support and reflect strong buyer interest at current prices.
Additionally, the average buying level in the 1W-1M range is $84,000, providing additional support in the event of a broader market pullback. This suggests that even in a more bearish scenario, Bitcoin may stabilize around $84,000 before resuming its upward trajectory.
The data reinforces the broadly bullish outlook for Bitcoin among analysts and investors, many of whom believe the current cycle is still in its early stages. Strong demand and strong support levels suggest that Bitcoin is well-positioned to maintain its bullish momentum in the coming weeks.
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Whether Bitcoin remains above current levels or experiences a temporary decline, market consensus remains optimistic about further gains and this cycle could mark a historic rise for the cryptocurrency.
BTC approaches $100,000
Bitcoin is currently trading at $95,200, a key level that could determine its next major move. This price point is a critical threshold, and if Bitcoin holds above it, it will set the stage for a test of the highly anticipated $100,000 level.
Before this psychological milestone is reached, the next significant supply area is located at $98,800. A break above this level could trigger a massive breakout, pushing Bitcoin past all-time highs and above the six-digit territory for the first time.
However, the risks remain high. If Bitcoin fails to sustain levels above $90,000, it could face a deeper correction. In this case, the next strong support is $85,500, a key level needed to maintain Bitcoin’s bullish structure.
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Market participants keep a close eye on these key levels as Bitcoin’s movements will influence broader market sentiment. With strong demand and momentum, the coming days will be key in determining whether BTC surges above $100,000 or consolidates further before resuming bullishness. As the market remains highly active, traders and investors are bracing for significant moves ahead.
Featured image from Dall-E, chart from TradingView
