In the wake of the latest market downturn, Bitcoin’s value took a tumble, dipping under the key psychological threshold of $70,000 once again. Current figures from CoinGecko put Bitcoin’s price at approximately $69,204, marking a slight 0.1% dip over the past 24 hours.
Yet, on-chain metrics indicate that Bitcoin is now testing a crucial support level, which may lead to a revival of its rising price trend.
A recent analysis shared via an X platform post by crypto commentator Ali Martinez points out that Bitcoin has formed a substantial support base at its present valuation. This conclusion is built on the volume of Bitcoin purchased at and around the current pricing levels, drawing on data from IntoTheBlock.
Displayed above is a graphic representation of how the Bitcoin supply is distributed over assorted price brackets. The size of the dots in the graphic illustrates how robust the resistance and support areas are, based on the bulk of coins bought within each respective price span.
Research by the analytical group indicates that an overwhelming 1.97 million addresses acquired about 965,000 BTC within the price bracket of $67,353 to $69,383. Martinez interprets the substantial trading activity within this range as the creation of a critical support level. Â
Martinez, in his X platform post, accentuated the significance of the present bracket that confines Bitcoin’s value. He mentioned that maintaining the robustness of the $67,353 – $69,383 support zone is vital for Bitcoin’s price to continue its ascent.
The near two million investors with their investment basis at this juncture might solidify their hold by acquiring more Bitcoin, and such buying pressure could confirm the support’s strength. Contrarily, if this essential support unravels, Bitcoin’s price could experience a drop, perhaps reaching lows around $65,000.
Over $1.57 Billion in BTC Shifted Away from Exchanges
A fresh on-chain activity, with the potential to influence Bitcoin’s value positively and secure its stance over the aforementioned support mark, has surfaced. Martinez reported on X platform that investor confidence appears to be improving at present.
He brought to light that a significant sum of BTC has exited centralized exchanges over the previous week. As per data by Glassnode, an estimated 22,647 BTC, worth in excess of $1.57 billion, withdrew from trading platforms within the past seven days.
This considerable pullout of digital currency from exchanges hints at an alteration in investor mindset and strategy. Furthermore, such a trend could signal a new phase of accumulation, with investors preferring not to depend on the security measures of centralized exchanges for storing their recently purchased crypto assets.
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