#BitcoinSupport #CryptoSupportLevels #BTCAnalysis #OnChainData #BitcoinPrice #InvestorBehavior #CryptocurrencyMarket #BTCResistance
On-chain data suggests that the next potential major support level for Bitcoin could be at $30,200 if a key level pointed out by an analyst is lost. Analyst Ali has provided insights into the current support levels of BTC from an on-chain perspective. Support levels are determined based on the amount of Bitcoin that investors have purchased at a specific price level. When the price declines to an investor’s cost basis, they may be more inclined to take action. If they were previously in a state of profit, they may believe that the asset will rise again in the future, especially if the overall market trend is bullish.
If a large number of investors have bought around the same price level, the asset retesting that level could create a notable reaction in the market. This surge in buying could potentially provide support for the cryptocurrency. Ali references the “UTXO Realized Price Distribution” (URPD) metric from Glassnode to identify these support levels. The URPD metric provides information about the supply that was last acquired at each price level visited by the asset in its history. Currently, the $36,400 price range holds the cost basis of a significant amount of supply. However, the cryptocurrency has recently dipped below this level, suggesting a potential loss of this major support area.
If Bitcoin fails to reclaim the $36,400 level, the next major support level would be at $34,300. A decline towards this level could result in losses of over 5% for the asset. It is important to note that this support level is thinner, meaning it may not be as effective in preventing further declines. In the event that Bitcoin falls below $34,300, the next support level would be around $30,200. This level is about 16% below the current spot price. The chart indicates that price levels below $30,200, until $25,000, host the cost basis of a significant number of investors, potentially acting as a strong support level. While a decline to $30,200 is possible if the $34,300 level is lost, it is unlikely that Bitcoin would drop further than that.
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