Potential resistance and support areas highlighted by the on-chain and market data provider
IntoTheBlock analysts have shared their view on the next crucial Bitcoin support and resistance levels as the cryptocurrency is now consolidating in the $44,000-$41,000 range for more than 12 days already.
The Last Support Block
According to the “In/Out of Money” metric, Bitcoin is currently trading near the crucial support level which was founded with the help of 615 BTC previously bought by 1.2 million addresses.
IntoTheBlock’s analysis is also being supported by elevated trading volumes close to $41,000 as bulls are trying to hold the increasing selling pressure on the market. In case of a breakout below $40,000, the market might see Bitcoin far below $38,000, as the fund’s concentration suggests.
The first significant resistance
As the given data suggests, the first noticeable resistance in the market currently remains near the $48,000 price. Around one million wallets hold 316,000 BTC with the aforementioned average entry.
IntoTheBlock analysts mark $48,000 as the resistance based on the market rule under which traders tend to sell their previously purchased assets to break even and exit the descending market.
Unfortunately, if Bitcoin even reaches $48,000 and breaks through $14.4 billion in sell orders, it could still face a wave of potential resistance with 5.7 million entities holding 1.5 million BTC on $48,000 and up.
Previously, U.Today reported that Bitcoin has reached a strong technical and historical support that could have been observed on a daily chart of the asset. The support zone mentioned in the article correlates with IntoTheBlock’s mentioned funds concentration zone.
