Bitcoin's price took a hit last weekend, falling below the psychological level of $70,000 again. According to CoinGecko data, the price of BTC is currently around $69,204, reflecting a 0.1% decline in the past day.
However, on-chain data indicates that the major cryptocurrency is currently retesting a major support level and may resume its upward trajectory soon.
Nearly 2 million addresses were purchased at this Bitcoin price
at recent days Share on X platform, prominent cryptocurrency expert Ali Martinez revealed that Bitcoin has established a major support area around its current price point. This evaluation revolves around the number of coins purchased around the current price level, according to IntoTheBlock data.
Source: Ali_charts/X
Above is a chart showing the distribution of Bitcoin supply across different price ranges. The size of the points in the chart shows the strength of resistance and support areas and the volume of coins gained around each corresponding price range.
Data released by the market intelligence firm shows that a whopping 1.97 million addresses bought nearly 965,000 Bitcoin between the $67,353 and $69,383 levels. According to Martinez, significant buying activity within this price zone has created a major support area.
In the post on X, the cryptocurrency analyst highlighted the strength and importance of the range in which BTC price is currently located. Martinez noted that the support area between $67,353 and $69,383 needs to hold strongly for Bitcoin price to “maintain its upward momentum.”
Nearly 2 million investors who have Cost basis Around this support area they could double down their position and accumulate more Bitcoin, and this buying activity – if sufficient – could ensure the support remains strong. However, if this vital support area fails to hold, investors could see Bitcoin price fall to as low as $65,000.
$1.57 billion worth of Bitcoin was withdrawn from centralized exchanges
An on-chain development has been revealed that could impact the price of Bitcoin and help keep it above the aforementioned support level. In another post on X, Ali Martinez shared that investor confidence seems to be on the rise at the moment.
A cryptocurrency analyst revealed that large amounts of Bitcoin (BTC) made their way off central exchanges last week. according to Data from Glassnodeapproximately 22,647 bitcoins (equivalent to more than $1.57 billion) were transferred from cryptocurrency exchanges in the past seven days.
A chart showing the Bitcoin price and balance on exchanges | Source: Ali_charts/X
This massive influx of cryptocurrency funds from trading platforms indicates a shift in investor sentiment and strategies. Moreover, it may be an indication of new accumulation, with investors unwilling to leave their newly acquired assets in the custody of central exchanges.
Bitcoin price above the $69,000 level on the daily tiemframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView