according to Data from CoinMarketCapBitcoin has had an unimpressive week with its market price falling by 4.65% over the past seven days. However, prominent cryptocurrency analyst Ali Martinez issued a price alert indicating that the market leader could suffer further losses if it fails to secure a certain support area.
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Bitcoin URPD Chart Shows Possible Correction – Analyst
in X posted on June 15Martinez stated that Bitcoin needs to quickly rise above $66,254, otherwise it risks a potential drop to around $61,100. Martinez based his theory on a UTXO Realized Price Distribution (URPD) chart created by data analytics platform Glassnode.
#Bitcoin It needs to rise back above $66,254 quickly to avoid a possible correction to $61,100! pic.twitter.com/WMr7jcAVJU
– Ali (@ali_charts) June 14, 2024
For context, Unspent Transaction Output (UTXO) refers to the units of Bitcoin that have not been spent after a transaction. Each UTXO has a realized price, i.e. the price at which it was transacted at the market price at the time of the UTXO. In the UTXO realized price distribution chart, the supply of Bitcoin is divided based on the realized prices of UXTOs showing the amount of BTC obtained at different levels.
This data can be used to study market sentiment and analyze distribution as well as support and resistance levels. More importantly, investor behavior can also be studied as a high concentration of UTXOs indicates levels at which most investors have bought Bitcoin which can translate into a potential resistance or support level.
According to the URPD chart shared by Martinez, 504,619 BTC were purchased at a price of $66,254, indicating strong potential to serve as support for BTC amid its current downtrend. Moreover, the next realized price with the highest number of Bitcoins (191,366) purchased is $61,101, which represents the next support level if the major cryptocurrency fails to reclaim the $66,254 price mark.
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Bitcoin price overview
At the time of writing, Bitcoin is trading at $66,151, reflecting a 1.15% price decline in the last day. In tandem, Bitcoin's daily trading volume also fell by 5.54% and reached $25.4 billion. However, Bitcoin remains in the green zone on the monthly chart with a gain of 5.80% which is a notable positive, especially for long-term traders.
according to coin codex, However, the overall sentiment is bearish, but the Fear and Greed Index stands at 74 indicating current optimism as well as risk-taking behavior among investors highlighting the potential for high market volatility.
Featured image from BBC, chart from Tradingview
