๐ On-chain data indicates over 533,330 addresses rushed into Bitcoin above $70,180. Following the recent drop, these investors are now facing losses.
๐ More than 500K Bitcoin addresses bought between $70,180 & $71,340. Analyst Ali noted many investors purchased at recent high levels.
๐ The chart shared by the analyst shows BTC supply distribution across various price ranges.
๐ฐ 382,000 addresses acquired 275,450 BTC in the $64,743 to $66,700 range. With the current spot price above, these investors are likely in profit.
๐ Investors watch closely as retests of their cost basis can flip their profit-loss status. The dip may be seen as a buying opportunity for some.
๐ค Significant reactions can occur when many hands share the same narrow cost basis range. This could provide support if retesting from above.
๐ช The $64,743 to $66,700 range, dense with investors, could act as a major support center below the current spot price.
๐ Losing this level could shift focus to the demand zone between $60,760 and $62,790, safeguarded by 797,500 addresses with over 298,000 BTC.
๐ก Monitoring key levels is crucial, notes Ali, as they could signal shifts in market sentiment.
๐ The $70,180 to $71,340 range stands out, with 533,330 addresses buying almost 433,000 BTC. Many of these buyers may have FOMOโd into Bitcoin after new all-time highs.
โ ๏ธ This large block may serve as resistance for the cryptocurrency, as new buyers might exit at their break-even during a retest of their cost basis.
๐ Bitcoin saw a sharp correction, now trading around $67,900.
๐ Disclaimer: Article for educational purposes only. Do your own research before investing.
๐ Historically, halvings impact Bitcoin's supply side by reducing mining rewards, leading to price increases due to reduced supply and ongoing demand.
๐ Today's price dip could be temporary, part of Bitcoin's larger cyclical journey.
๐ฎ All eyes will be on Bitcoin as the halving event approaches to see if history repeats itself.
