Reason to trust
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
On-chain data shows the Bitcoin spot price is currently sandwiched between two zones where a large number of investors last bought their coins.
Bitcoin Is Trading Between Two Major On-Chain Demand Zones
In a new post on X, analyst Ali Martinez has talked about where the key Bitcoin on-chain support and resistance levels currently lie. In on-chain analysis, support and resistance levels are defined based on investor cost basis.
The reason behind this is naturally the fact that holders are particularly sensitive to retests of their break-even mark. How exactly an investor would react to a retest of their cost basis comes down to multiple factors, like the direction of the retest and the overall sentiment in the market.
In general, holders might be inclined to accumulate more when a retest of their acquisition level happens from above (that is, they were in profit prior to the retest). They may do so believing that the same level would prove profitable again in the future.
On the other hand, the addresses who were sitting underwater just prior to the retest might decide to exit, fearing that the cryptocurrency would decline once more.
Obviously, when only a few investors are showing these buying/selling reactions, Bitcoin doesn’t feel any visible fluctuations. When the asset is retesting a narrow range with the cost basis of a large number of them, however, the story can be different.
Now, here is the chart shared by the analyst that shows how the ranges around the current BTC spot price look in terms of holder cost basis distribution:
As is visible in the above graph, Bitcoin has managed to break above a major supply wall with its recent recovery surge. This cost basis center, lying inside the $93,700 to $96,600 range, contains the acquisition mark of 2.13 million addresses. These investors bought a total of 1.39 million BTC here.
The asset is now looking to challenge the $96,900 to $98,700 range, which carries the cost basis of 750,800 BTC. Since these investors are holding at a loss, it’s possible that the coin would have trouble breaking through this zone.
The fact that the more massive $93,700 to $96,600 range has now turned green, however, could be an optimistic sign. This potential strong support could mean that even if Bitcoin finds it hard to find a break above, it would at least have a cushion to drop back on after every rejection.
In the scenario that this support gives out, though, the asset doesn’t have any other major zone until $82,000 to $85,000. It now remains to be seen whether demand would be strong enough to keep the BTC price recovery run going or not.
BTC Price
At the time of writing, Bitcoin is floating around $96,800, up over 2% in the last seven days.
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
