Bitcoin Retests Resistance: Here’s The Level A Break Could Lead To
March 25 2024 - 11:00AM
NEWSBTC
Data shows Bitcoin is currently retesting a major on-chain
resistance level, and a break above which can potentially lead to a
surge in its price. Bitcoin Has Major On-Chain Resistance Around
$67,000 As pointed out by analyst Ali in a post on X, BTC may be
able to see a rise towards the $72,900 level if the asset can break
the current on-chain resistance barrier. Related Reading: Bitcoin
Long-Term Holders & Price Top: Glassnode Reveals Pattern In
on-chain analysis, any level’s potential to act as support or
resistance is measured using the amount of Bitcoin that was
acquired/bought by the investors around said level. The analyst has
shared the chart for the “UTXO Realized Price Distribution” (URPD)
indicator from Glassnode, that reveals how the various levels
around the current spot value of BTC are looking like right now
based on the density of supply that was last bought at them. Looks
like there is significant resistance coming up ahead at the $72,900
mark | Source: @ali_charts on X The URPD here is “ATH partitioned,”
which means that the price ranges here are defined by dividing the
levels between zero and the current all-time high (ATH) into 100
equal partitions. From the chart, it’s visible that the partition
around the $66,990 level carries the cost basis of a notable amount
of the supply right now (1.3%). This also happens to be the range
BTC is retesting at the moment. Generally, the cost basis is a
special level for investors, and thus, they tend to be more likely
to show some reaction when a retest takes place. If a large number
of holders share their cost basis inside the same narrow range,
then this reaction may result in a scale that could be relevant for
the market. As for what direction this reaction from the holders
would be probable to happen depends on the side the retest is
happening from. A retest from under (meaning that these holders had
been in loss prior to the retest) could lead to a selling reaction
in the market. This is because these investors may not want to risk
the cryptocurrency declining again in the future, so exiting while
they have the opportunity to at their break-even might be tempting.
Related Reading: This Bitcoin Halving May Not Result In Supply
Squeeze: Glassnode As such, retests like these can lead to the
asset feeling some degree of resistance. In the current case, the
range is notably filled up with coins, so it’s possible that the
strength of this resistance would be just as powerful. From the
chart, it’s visible that after this range, the asset potentially
faces no strong on-chain resistance barriers until the $72,879
level, which hosts the cost basis of about 1.61% of the supply. “If
Bitcoin can break past $66,990, it will likely rise toward
$72,880!” says Ali. BTC Price Bitcoin has been climbing up in the
past day, with its price now reaching the $67,200 level. Should
this surge be sustained, the asset would be through the current
resistance block. The price of the coin appears to have been going
up over the past couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, Glassnode.com,
chart from TradingView.com
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