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The Bitcoin price put in one of its strongest performances in recent times over the past week, rallying to above the $88,000 level early on. However, the premier cryptocurrency experienced a steep correction on Friday, March 28, following the latest February core inflation data.
With the price of BTC now hovering beneath $84,000, panic seems to be growing in the market as investors fear further correction for the world’s largest cryptocurrency. Interestingly, the latest on-chain data show the critical support levels for the Bitcoin price.
Is BTC At Risk Of A Fall To $71,000?
In a recent post on the X platform, blockchain analytics firm Glassnode explained the recent investor behavior and how it could impact the Bitcoin price action over the next few days. This evaluation is based on the cost basis distribution data of investors around the Bitcoin price.
According to Glassnode, the cost basis distribution data reflects the total Bitcoin supply held by addresses with an average cost basis within specific price buckets. As observed in the chart below, the heat map (color intensity) represents the magnitude of BTC supply in a price zone.
Source: @glassnode on XGlassnode data shows that a significant percentage of traders purchased roughly 15,000 BTC at the $78,000 level on March 10 before selling at the recent $87,000 local top. Following this latest round of redistribution, the BTC supply at the $78,000 level is now thin, weakening the support cushion.
It is worth noting, though, that the next crucial support levels lie around $84,100, $82,090, and $80,920, where investors purchased 40,000 BTC, 50,000 BTC, and 20,000 BTC, respectively. However, the Bitcoin price could be at risk of a deep correction if it loses these levels.
In case of a deeper correction, $78,000 might not offer a strong enough cushion for the flagship cryptocurrency following the recent sell-off by investors previously holding at the level. Glassnode data shows that the Bitcoin price could fall to as low as $74,000, the next significant support level after $80,000.
The on-chain analytics platform highlighted $74,000 (where investors bought 49,000 BTC) and $71,000 (where investors bought 41,000 BTC) as the next support levels should the Bitcoin price fall beneath $80,000. “These levels reflect conviction-driven accumulation zones that could absorb additional downside pressure,” Glassnode added.
Bitcoin Price At A Glance
As of this writing, the price of Bitcoin stands at around $83,800, reflecting an almost 4% decline in the past 24 hours.
Featured image from iStock, chart from TradingView
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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