The price of Bitcoin (BTC) is likely to witness mild correction after its recent parabolic run, but the current address holdings form a formidable support that might stabilize any negative volatility.
After a period of uptrend, a correction is often the next feasible direction. For February, the price of Bitcoin jumped by more than 47%, hitting a high of $63,913.13 and sending more than 95% of its addresses into profit.
Per data from IntoTheBlock, Bitcoin currently has strong support with minimal resistance placing it at a bullish position at the moment.
Formidable Bitcoin Acquisition Zone
According to data pointed out by market Analyst Ali Martinez, Bitcoin’s price is currently holding steady above a “massive support wall.” Approximately 1 million addresses acquired a total of 671.06K Bitcoin between the prices of $60,334.94 to $62,155.10.
With the price of Bitcoin now pegged at $63,913.13 despite the 2.53% correction in the past 24 hours, the selling pressure is removed in the short term.
Amid the current slip in price, Martinez noted that this price range serves as a region of strong investor confidence and might cushion against further drops.
#Bitcoin holds above a massive support wall, with 1 million addresses buying over 671,000 $BTC within the price range of $60,334 to $62,155.
This accumulation zone highlights strong investor confidence and could serve as a crucial level of support for #BTC, potentially… pic.twitter.com/lmghohWR1U
— Ali (@ali_charts) March 1, 2024
However, should Bitcoin’s price drop below this range, there is a guarantee that the $58,447.37 to $60,334.94 price range will act as a formidable support.
Overall, about 50.99 million addresses, or 98.06% are in profit at the moment. To balance this impressive profitability, 193.45K addresses, or 0.37% of the total holders, are seeing losses, while only 815.73k addresses, or 1.37%, are at a breakeven point.
Bitcoin’s Ripple Effect
The uptick in the price of Bitcoin and the accompanying profitability has also triggered a related jump for other altcoins. Besides Ethereum (ETH), which has increased its address profitability to 89.98%, Shiba Inu is one of the biggest beneficiaries, with over 55% of all addresses now in profit.
The hype surrounding the spot Bitcoin ETFs product is likely to drive a further surge in the price of BTC as adoption widens, and the ripple effect might be encompassing as has been showcased thus far.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.