Following Bitcoin’s recent slump to the $66,000 territory, new support and resistance levels have emerged.
Since breaking its 2021 all-time high of $68,900 earlier this month, Bitcoin’s price has ventured into previously untouched territory. The cryptocurrency’s price soared as high as $73,600 before dropping to $66,000 in the past 24 hours.
The volatile price action has charted new support and resistance levels that investors must watch out for. This is especially crucial for traders looking to capitalize on such volatility in the short term.
Using on-chain data, prominent analyst Ali Martinez identified the ranges between $64,750 and $66,700 as crucial support levels for BTC.
The support exists because 381,660 addresses acquired 275,000 BTC at this price range. With those bitcoins valued at over $18 billion, strong selling pressure from bearish traders will be required to push BTC below that price level.
At the same time, a break below that level will diminish the current bullish sentiment that still overrides the market. However, the analyst notes that bears will not have an easy ride as another significant support level exists.
The data further reveals that between $60,760 and $62,790, an estimated 797,500 Bitcoin addresses acquired 298,000 BTC (20 billion).
A more significant selling pressure will be required to send BTC below that price range, which the analyst defines as a “significant demand zone.”
Resistance Levels to Watch
Following Bitcoin’s most recent decline, bullish investors have managed to stabilize prices, sending BTC back above $68,000 at the time of writing.
The analysis shows that 533,300 Bitcoin addresses holding 433,000 BTC (approximately $29.5 billion) will become profitable between $70,180 and $71,340. Hence, such holders may exert selling pressure to constrain Bitcoin’s climb back to high price levels.
#Bitcoin has established a solid support range between $64,750 and $66,700, where 382,000 addresses hold more than 275,000 $BTC. Monitoring this level closely is crucial, as losing it could shift the focus to the next significant demand zone between $60,760 and $62,790,… pic.twitter.com/QlZzoojSNB
— Ali (@ali_charts) March 15, 2024
Meanwhile, bullish investors must remain hopeful that the market reverses the recent 80% drop into the Bitcoin ETFs for an uptrend to continue.
An improved inflow into the ETFs in the week ahead will provide more firepower to overcome the newly set resistance levels and pave the way for the most bullish Bitcoin predictions in 2024.