Crypto News

Bitcoin Positioned For Potential Rebound As Key Support Zone Holds Strong

Bitcoin is currently teetering on a crucial demand zone, where approximately 1.66 million addresses have acquired it at an average price of $64,800.

This zone holds significant potential to serve as a robust support level, offering a buffer against further downward pressure in the market.

Insights from analyst Ali Martinez suggest that whenever the Bitcoin MVRV Ratio dips below its 90-day average since November 2022, it signifies a promising buying opportunity for BTC, historically resulting in an average gain of 67%. This presents an opportune moment for investors to consider entering the Bitcoin market.

Martinez also highlights a shift in Bitcoin’s behavior, noting a divergence from its previous correlation with the Global Liquidity Index until 2024. To sustain the ongoing bull run, a surge in liquidity is deemed necessary, particularly in anticipation of the upcoming US elections.

Despite a notable increase in fees paid to Bitcoin miners, the creation of new BTC addresses has witnessed a decline, reaching just 260,838. This trend underscores the importance of monitoring network activity to gauge market sentiment and potential price movements accurately.

Bitcoin Consolidates Here With Massive Accumulation Ongoing 

Looking ahead, Bitcoin aims to consolidate support around the $66,000 mark, where a significant number of addresses have accumulated approximately 747,000 BTC. Success in securing this support level could pave the way for the cryptocurrency to challenge critical resistance levels ranging between $69,900 and $71,200.

As Bitcoin navigates through these pivotal levels, investors are closely monitoring market dynamics and key indicators to assess the likelihood of a potential rebound. With the cryptocurrency market exhibiting signs of resilience, there remains cautious optimism for Bitcoin’s trajectory in the near term.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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