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.
Bitcoin is currently positioned right on top of a key demand zone, with 1.66 million addresses having purchased it at an average price of $64,800.
This price point could potentially act as a strong support level should the market experience further downward pressure. pic.twitter.com/MaCABIULNG
— IntoTheBlock (@intotheblock) April 22, 2024
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.
Until 2024, #Bitcoin mirrored the Global Liquidity Index closely. This year, that trend broke!
We need a surge in liquidity ahead of the US elections to keep the $BTC bull run going. pic.twitter.com/cPj6dY86On
— Ali (@ali_charts) April 21, 2024
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.
#Bitcoin aims to secure $66,000 as support, where 1.54 million addresses bought 747,000 $BTC. If successful, the next critical resistance level for #BTC is between $69,900 and $71,200! pic.twitter.com/TvFCLNgHCi
— Ali (@ali_charts) April 22, 2024
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.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: beautifulblossom/123RF // Image Effects by Colorcinch