Bitcoin
This Bitcoin (BTC) Support Level Could Turn to Resistance if Broken
The weekly rally of more than 7% pushed the price of bitcoin briefly above $67,500 – a level not seen in nearly a month. The world’s leading crypto asset is currently looking to establish a new peak.
With the latest bullish price action, BTC has found new support. If reversed, however, this level could also prove to be an important area of resistance.
US$61,500: crucial level emerges
The $61,500 level could potentially serve as strong support for the asset when considering the Short-Term Holder Realized Price (STH), a metric that reflects the realized capital of BTC holders who held their coins from a day to six months.
This group of investors represents 53.48% of the total market value and therefore has significant weight.
Within this cohort, CryptoQuant identified Bitcoin STH from 0 days to 1 week, capturing 10.6% of the market, closely tracks the spot price and therefore often does not indicate significant variation. Meanwhile, the 1 week to 6 month group, accounting for 47.78% of the market, provides a more accurate reflection of short-term traders’ stocks and sentiment.
Notably, 1-3 month holders who entered during the March rally now control over 30% of the realized cap, reflecting a substantial transfer of volume from long-term to short-term holders.
This sensitivity of investors to the realized price of STH could cause $61,500 to act as a central level, according to CryptoQuant analysis, which, if breached decisively, could turn from support to strong resistance .
New peak for Bitcoin soon?
The price of Bitcoin has improved since last week and is currently hovering just below $67,500 after surpassing this level over the weekend. The level was considered noteworthy by the latest 10x Research report News Bulletin also, which stated that a break above could lead to new all-time highs.
“Bitcoin price action has improved significantly since last week. Prices recovered to the late April resistance zone (67,500), surpassing the early May highs (64,000). An advance above 67,500 could potentially lead to new all-time highs, a scenario our Bitcoin ETF model predicts.”