Bitcoin is now trading below $63,000, a steep drop from the previous day. This is where the price of bitcoin has fallen. next According to data collected on the chain, potential support can be calculated.
Bitcoin could find support at these price levels
The new post On X, Ali discussed the current Bitcoin resistance and support levels based on data on-chain from Glassnode.
This is the indicator that shows relevance.UTXO Realized Price DistributionThis tells us the total amount of coins. UTXOsThe last price at which the asset was purchased.
The chart below shows data from the analyst for the distribution of prices around recent spot values for cryptocurrency.
The highest amount of coin at present is $72,880 | Source: @ali_charts on X
On the graph it is clear that a few prices levels are close to the current price level that have a lot of activity.
On-chain analysis is done by calculating the number of coins whose cost basis falls at that level.
The coins at the bottom of the level could act as a support wall, and those that are above it may prove to be a resistance wall.
The graph shows that the levels of $61,100 ($61,100), $56,685 ($56,685), and $51,530 ($51,530) are those below the present price, which represent the basis for a significant amount of supply. This means, if the price continues to fall, that these are the levels you should be watching for any possible recovery.
The cost base for two levels is larger than the three support levels combined: $66,990, and $72,880. The chart shows that the last of the three levels is also the largest of the four price points. FOMO buying The asset is at its highest level ever.
If Bitcoin were to regain its upward momentum in the future, it is likely that the most troublesome levels would be those with high costs of population.
As for the reason why investors will likely show some type of reaction when their cost basis is retested, this can be explained by the fact that they are more than likely to react in a certain way.
Holders may choose to increase their holdings when the price is retested from above. They believe the price will continue to rise in the future. If the retest comes from below, the holders may decide to sell, thinking that they are better off selling at the current price than taking a risk of another decline.
If a large number of coins have the same cost base, then there is a high probability that one or more of these reactions will occur, and the result could be a significant support effect, or even a resistance.
BTC price
Bitcoin, which has fallen to $62,700 now, is edging closer to a major on-chain level.
Price of asset has dropped over last few days. Source:| Source: BTCUSD on TradingView
Featured Image from Shutterstock.com and Glassnode.com. Chart from TradingView.com
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