Bitcoin’s price recently soared past $117,000, fueled by positive comments from Federal Reserve Chairman Jerome Powell. But where’s the safety net if the price dips? Data analysis suggests a key support level.
A Solid Support Zone
Glassnode, a well-known crypto analytics firm, points to a crucial support zone for Bitcoin between $104,000 and $108,000. Their analysis uses the UTXO Realized Price Distribution (URPD) model. This model shows where Bitcoin was last traded. The $104,000-$108,000 range shows a huge concentration of Bitcoin that was bought over the past year. This means a lot of people bought Bitcoin in that range, and they’re less likely to sell at a loss. This makes it a strong support level.
Powell’s Impact: A $300 Million Surge
The recent Bitcoin price jump wasn’t just about the support level. CryptoQuant analyst Darkfost noticed a massive influx of money into Bitcoin futures markets after Jerome Powell hinted at a potential shift in the Federal Reserve’s monetary policy. Powell’s comments suggested the Fed might ease its interest rate hikes. Within just 15 minutes of his speech, about $300 million flowed into Bitcoin futures, boosting Binance’s Bitcoin open interest to roughly $13.3 billion. Investors are betting on potential interest rate cuts in September.
The Bottom Line
Even after a slight price pullback, Bitcoin remains strong, trading around $115,850. While the recent rally is exciting, the $104,000-$108,000 support zone provides a crucial safety net should the price correct. The combination of on-chain data and market reaction to Powell’s statements paints a picture of a relatively stable, albeit volatile, Bitcoin market.
