Bitcoin continues to trade sideways at the $70,000 mark today, reflecting a consolidation phase for the coin. This appears to have attracted a lot of investor attention across the cryptocurrency market as on-chain market data for the coin further suggests long-term stability for BTC at $70,000 amid the upcoming BTC halving. Below is a further look at why BTC price may continue to fluctuate at current price levels.
Bitcoin bulls provide support, and a key showdown between addresses holding BTC at support and resistance levels has attracted a lot of attention from global cryptocurrency market participants. Notably, analyst Ali Martinez highlighted data from Into The Block showing a potential bullish win for BTC, which appears to have prevented the coin from falling below $70,000.
According to these on-chain insights, strong support for Bitcoin prevails as a large number of addresses hold BTC between the $68,220 and $70,325 support levels. Interestingly, this support zone is home to around 1.4 million addresses hoarding a total of 893,000 BTC coins. This determined accumulation signals strong investor sentiment, ready to protect the price of Bitcoin from a significant drop, specifically below $70,000.
However, the data also shows that there are 474,000 addresses located between the $70,760 and $71,200 resistance levels, holding a total of 285,000 BTC coins. However, despite the considerable number of addresses holding BTC at the resistance level, it pales in comparison to the overwhelming support present in the market, further cushioning the coin from a drop below $70,000.
Due to the clear increase in the number of addresses and the amount of Bitcoin within the support zone, the odds favor Bitcoin bulls, which could provide support for the BTC coin at $70,000. As mentioned above, the Bitcoin token appears to be going through a consolidation phase as of the time of writing, with its price currently sitting at $70,718
Furthermore, another leading analyst, Rekt Capital, confirmed that Bitcoin (BTC)’s movement in the $69,000 to $71,300 price range is definitely consolidation, “regardless of how fearful investors are about BTC retesting range low support or retesting range support, high resistance.This further explains why Bitcoin may be stable at the $70,000 mark for a long time.
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