LIVE🤔 Bitcoin Holds Strong On-Chain Support Below $68,900: Ready for a Fresh Rally?
On-chain data indicates that Bitcoin has significant support between $66,900 and $68,900, potentially providing a solid foundation for a new surge to higher levels.
🔸 Strong Investor Activity Between $66,900 & $68,900
According to the market intelligence platform IntoTheBlock, Bitcoin is currently above a major demand zone. In on-chain analysis, the strength of support or resistance levels is determined by the amount of “demand” at those levels.
A chart shows various Bitcoin price ranges near the current spot value and compares them in terms of the total amount of Bitcoin purchased by investors. The size of each dot on the chart represents the total number of tokens last acquired at the corresponding price range. The levels between $66,900 and $68,900 represent the cost basis for the largest amount of BTC, with over two million addresses having acquired 1.1 million BTC in this range.
Since Bitcoin's current spot price is above these levels, all investors who bought within this range are now seeing slight profits.
📊 The Importance of Investor Cost Basis
In on-chain analysis, investor cost basis holds psychological significance. A potential retest of this level can flip the profit-loss balance for holders. Investors might react differently depending on their positions before the retest:
- Investors carrying losses before a retest from below might be tempted to sell to avoid further declines.
- Investors already in profit might anticipate further price increases and hold onto their BTC.
These reactions can impact the wider market, making major demand zones below potential support points and those above potential resistance levels.$BTC
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