Bitcoin recently hit a record high, but things have calmed down a bit. Let’s look at why the $115,000 price point is so important.
The $115,000 Support Zone
After a record high around $123,000, Bitcoin’s price has been pretty volatile. A dip below $115,000 sparked concerns about the end of the rally. But crypto expert Burak Tamaç points out something interesting.
Using a metric called “Supply Distribution URPD,” Tamaç noticed a significant gap in Bitcoin transactions around the $110,000-$115,000 range. This means fewer large transactions happened at these prices recently. However, below this gap ($90,000-$110,000), there was a lot of activity.
This gap acts like a cushion, or support level. The high activity below makes it likely Bitcoin will find support just above this gap, around $110,000-$115,000.
Bitcoin’s Recent Behavior
Since hitting its all-time high, Bitcoin has been consolidating – meaning sideways movement. Crucially, it hasn’t fallen below $115,000 during this period. This reinforces the idea that a new support level has formed around $110,000-$115,000.
What Happens Next?
If Bitcoin stays above $115,000, we can expect further upward momentum. But, if it breaks below that support, a significant price drop could happen.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading around $118,050, up about 2% in the last 24 hours.
