Bitcoin ($BTC) Facing Important Price Levels, According to Analyst
The price of Bitcoin ($BTC), the leading cryptocurrency, has experienced significant volatility this year. After reaching a new all-time high above $73,500, it underwent a correction and dropped below a key support level at $66,000. Popular cryptocurrency analyst Ali Martinez has identified important price levels to watch.
Martinez believes that Bitcoin has established a strong support range between $64,750 and $66,700, as evidenced by the presence of 382,000 addresses holding over 275,000 BTC, worth approximately $18.7 billion. Monitoring this support range closely is crucial, as a break below it could shift attention to the next significant demand zone between $60,760 and $62,790. In this range, 797,500 addresses hold over 298,000 BTC, valued at more than $20.2 billion.
On the upside, Bitcoin is facing strong resistance between the $70,180 and $71,430 levels, with 533,300 addresses collectively holding 433,000 BTC. If the price surpasses this resistance, it could trigger these wallets to break even.
Bitcoin’s recent pullback occurred as it reached a new all-time high for the fifth time in just seven days. The broader risk aversion across financial markets also played a role, with investors seeking safer havens. Concerns regarding the Federal Reserve’s approach to monetary policy intensified due to higher-than-expected inflation reports. This has solidified the belief that the Fed may maintain or increase interest rates to combat inflation.
In other news, financial services firm Bernstein has initiated coverage of online trading platform Robinhood, projecting a “monster” cryptocurrency market cycle. Bernstein analysts anticipate the total market capitalization of cryptocurrencies to skyrocket to $7.5 trillion by 2025, nearly tripling its current value of $2.6 trillion. This growth could significantly impact Robinhood’s cryptocurrency revenue, potentially increasing it by a factor of nine. The bullish outlook extends to individual cryptocurrencies, with Bitcoin’s market capitalization expected to reach $3 trillion by 2025, doubling its current value, potentially pushing BTC’s price to over $150,000. Ethereum ($ETH) is forecasted to reach a market capitalization of $1.8 trillion.
Bitcoin’s future remains a subject of intense speculation, and market participants will be closely monitoring these key price levels and market factors for further insights and potential trading opportunities.