Bitcoin
As Bitcoin falls below key support level, this group makes important moves
- Bitcoin remained in the US$64,000 price area.
- Close to 2 million addresses purchased BTC in this price range.
Bitcoin [BTC] It recently fell below a key support level that it has held for several weeks. Although it has surpassed this support line, there is another less visible support level.
If BTC falls below this invisible threshold, it could trigger a series of declines due to a potential sell-off.
This situation is already being worsened as miners sold a record number of BTCs in response to falling prices.
Bitcoin’s Old Support Remains as Resistance
AMBCrypto Review Bitcoin on a daily chart revealed that it recently broke its support level. The level was previously established around the $66,000 price area.
This support was marked by its short-term moving average (yellow line). It remained stable from about May 16th until June 17th. This breach indicated a significant change in Bitcoin market behavior.
Source: TradingView
At last update, Bitcoin was trading at approximately $64,380, showing a slight increase. It also closed with a small gain on June 22, ending the day around $64,252.
However, these numbers are still significantly below the former support level of $66,000, which has now turned into a resistance level. This indicated a challenge for Bitcoin to recover this price in the short term.
The importance of this price level, around $66,000 for Bitcoin, is highlighted by the significant number of addresses that have purchased Bitcoin in this track.
This high concentration of purchases creates a psychological and technical meaning for the price level.
How many addresses purchased Bitcoin in this range?
The data from Inside the block indicated that the current price range of Bitcoinbetween approximately US$63,493 and US$64,931, is particularly significant due to the high number of addresses involved in transactions at this level.
Specifically, around 1.9 million addresses purchased BTC within this range. Additionally, the average purchase price for these transactions was around $64,237. T
its concentration of purchasing activity at these levels highlights its importance in the market.
They represent key points where significant volume of Bitcoin has changed hands, influencing potential resistance or support dynamics in the market.
With many investors at or near this price, it can act as a strong resistance level when the price tries to rise back to this point.
These investors may seek to balance their investments, potentially selling their holdings, which increases selling pressure at this level.
On the other hand, if the price drops back to this range, the same investors may buy more to average out their costs. They may also delay sales to avoid losses, providing potential support.
Miners in panic?
Additional data from IntoTheBlock reveals that Bitcoin miners have significantly increased their sales activities since the beginning of the year.
Miners have sold approximately 30,000 BTC, valued at around $2 billion, since June. This sales volume is considered the highest in the Minas Gerais community in more than a year.
Source: IntoTheBlock
These substantial sales by miners may be a response to various market conditions, including price volatility or the need to cover operating costs.
To read Bitcoins [BTC] Price prediction 2024-25
However, it plays a critical role in influencing Bitcoin market dynamics, particularly affecting supply and price.
The importance of miners selling a large amount of Bitcoin becomes even more pronounced when considering the number of BTC held by various addresses within the current price range.