This Bitcoin Range The Next Key Resistance, Analytics Firm Says
According to Chain Chain data, market intelligence platform Intotheblock reveals where the next major obstacle to Bitcoin may be.
Bitcoin’s supply wall is between $95,400 and $98,200
In the new postal On X, Intotheblock discusses how various BTC price ranges can be resisted and supported on-chain. In chain analysis, it is assumed that the strength of any support or resistance range is the amount of supply the investor buys/trades next time at the above price level.
That is, a strong support/resistance range with Cost basis A large number of addresses. The reason behind this is that for any investor, their breakeven level is naturally a special level, so when retesting it, they are likely to take some action.
Holders who suffer losses before retesting may be easy to sell because they will at least recover all investments. However, profitable investors may decide to buy more because they can believe that the same acquisition level will eventually pay off again in the future.
Naturally, only a few investors have no effect on the price of cryptocurrencies, so if they have to act as a resistor or support boundary, the range will need to include a cost basis for a large number of addresses.
Now, here is a chart shared by the analytics firm that shows how Bitcoin supply is distributed around the range of current prices:
In the figure, the size of the dot is related to the number of coins the investor purchases within the corresponding range. It seems that in terms of the size of its points, especially the current price range: $95,400 to $98,200.
At these price levels, about 2.29 million addresses purchased 1.66 million tokens. Given that the current range is higher than asset prices, all of these investors will be in the red.
Bitcoin has recently experienced a roller coaster Crush Less than $80,000 and recover Return over $90,000 in a few days. Therefore, these underwater holders may be particularly eager for the price to restore its cost base.
“The fearful sentiment can trigger these holders to sell at break-even prices, thus providing resistance,” Intotheblock explained. Now, if BTC can gather enough to retest that range, it remains to be seen whether demand will exceed these potential sellers.
BTC price
Bitcoin is approaching the $95,000 level in the latest price rally, but it seems to be facing a review since now it’s back to $90,700.
