Bitcoin Has Solid On-Chain Support Between $66,900 and $68,900: Potential for a Fresh Bullish Rally?
On-chain data analysis indicates that Bitcoin may find significant support between the price range of $66,900 and $68,900. This robust support level offers a strong foundation for a potential surge to higher levels in the market.
Market intelligence platform, IntoTheBlock, has provided data showcasing the amount of Bitcoin acquired by investors within specific price ranges. Signs suggest that levels between $66,900 and $68,900 currently hold the highest number of BTC tokens purchased. More than two million addresses acquired 1.1 million BTC within this range. With the current BTC spot price above these levels, any purchase made in this range would result in slight profits for the investors.
Analyzing on-chain investor cost basis is crucial as it holds psychological significance. When a potential retest occurs, it can potentially flip the profit-loss balance for the holder. This can prompt investors to make strategic moves. Those who are experiencing losses before the retest may be tempted to sell out of fear that the price may decline further. Conversely, investors who are in profit before the retest may have reason to believe that the price will rise again, leading them to accumulate more.
Retests of price ranges with significant investor participation can prompt diverse reactions that impact the wider market. Major demand zones below the current price level can act as support points, while those above can serve as resistance barriers.
Bitcoin currently enjoys a substantial support range between $66,900 and $68,900, which could provide a cushion against any potential price drops. Additionally, the chart indicates that the ranges ahead of the current price level have light investor participation. This circumstance creates favorable conditions for a potential bullish rally towards higher price levels.
Earlier in the day, Bitcoin surged above the $70,000 level, but it has retraced slightly to $69,100 at the time of writing.