Bitcoin’s price has been hanging tough above $110,000 lately, and some clever number-crunching shows it’s sitting pretty above some important support levels. Let’s dive into what those levels are and why they matter.
Where Will Bitcoin Find Support?
A crypto analyst recently shared some insights using a cool metric called the BTC UTXO Realized Price Distribution (URPD). This metric basically shows where a lot of Bitcoin was bought in the past.
Think of it like this: The price you paid for something is your “cost basis.” If lots of people bought Bitcoin around a certain price, that price becomes a support level. Why? Because those people are less likely to sell at a loss. They might even buy more Bitcoin to lower their average cost.
Conversely, if many people bought high, that price becomes resistance. They might sell if the price goes back to their cost basis to avoid losses.
The Crucial Numbers
According to the URPD, here are Bitcoin’s key support levels:
- $108,250: A whopping 432,000 Bitcoins were bought around this price.
- $104,250:
Around 401,000 Bitcoins were acquired here.
- $97,050: Approximately 404,000 Bitcoins were purchased at this level.
The idea is that if the price drops towards these levels, all those buyers will likely hold on, preventing a bigger crash. They might even buy more to average down their cost.
Looking Ahead: Resistance and Current Price
The analyst also pointed out a major resistance level at $116,963. A significant number of investors (550,000 coins) bought around this price, and they might sell if the price climbs back there, potentially pushing the price down.
At the time of writing, Bitcoin is trading around $110,628, showing little movement in the last 24 hours but up slightly over the past week.
