Bitcoin has been struggling lately, with its price dropping by 4.65% in the past week. But analyst Ali Martinez says there’s a specific support zone that Bitcoin needs to hold if it wants to avoid further losses.
Martinez’s Analysis
Martinez used a chart called the UTXO Realized Price Distribution (URPD) to analyze Bitcoin’s price. The URPD chart shows how much Bitcoin was bought at different prices.
According to the URPD chart, 504,619 Bitcoin was bought at $66,254. This means that $66,254 is a strong support level for Bitcoin. If Bitcoin falls below this level, it could drop to the next support level at $61,101.
Current Bitcoin Price
As of now, Bitcoin is trading at $66,151. This is a 1.15% decrease from yesterday. The daily trading volume is also down by 5.54%.
Outlook
Despite the recent dip, Bitcoin is still up 5.80% on the monthly chart. This is a positive sign for long-term traders.
However, the overall sentiment is still bearish. The fear and greed index is at 74, which indicates optimism but also risk-taking behavior. This could lead to high market volatility.
