Bitcoin Price At Risk Of Further Correction – Here’s How
The post Bitcoin Price At Risk Of Further Correction – Here’s How appeared on BitcoinEthereumNews.com.
A popular crypto analyst has explained how the Bitcoin price could be at risk of further downside based on the current distribution of BTC supply around the price. This Bitcoin Price Range Holds A Critical Supply Barrier In a recent post on the X platform, prominent crypto pundit Ali Martinez discussed how the price of Bitcoin could suffer more decline. The rationale behind this bearish projection revolves around the average cost basis of several BTC investors. Data from IntoTheBlock shows that around 5.45 million addresses purchased approximately 3.03 million BTC within the price range of $64,300 and $70,800. As highlighted by Martinez, this has led to the formation of a crucial supply barrier within this price bracket. For context, a supply barrier refers to a price range where a large amount of cryptocurrency was acquired. From the size of the dots in the graph below, it appears that Bitcoin currently has a significant supply barrier above it. A graph showing the distribution of BTC supply around various price ranges | Source: Ali_charts/X This price range becomes especially relevant when the Bitcoin price falls below this level, as BTC holders within the supply barrier might start selling in order to cut their losses. This could lead to intensified selling pressure and potentially steeper price correction for the premier cryptocurrency. Furthermore, a large-scale offloading and continuous price decline could negatively influence the market sentiment, triggering panic selling amongst other investors. If the selling pressure is significant, this could add to the downward pressure on the price of BTC. As of this writing, the Bitcoin price stands around $64,460, reflecting a mere 0.2% increase in the past 24 hours. Bitcoin Miners Are Capitulating Typical investors might not be the only class of participants contributing to the selling pressure facing the Bitcoin price at…
Filed under: News - @ June 23, 2024 10:26 am