Bitcoin could lose ground under its legs as we see melting support
Bitcoin may be losing remaining support between the $30,000 and $29,000 price levels, according to data from IntoTheBlock. The entry/exit of silver around the price suggests that the resistance at $30,000 is slowly breaking through the support we see at around $29,000.
Back on May 25, traders were holding at least 860,000 BTC around the price of $29,000. As of today, bears ate more than a half of that value, and traders are now left with only 360,000 BTC holding the level.
Besides the melting of the support, we could see a massive increase in the resistance at around $30,000. While the volume of the mentioned price was around 400,000 BTC only a day ago, it has already reached 900,000 and continues to grow.
The IOMAP indicator is not a representation of an orderbook but a chart that shows the volume and profitability of traders who entered the asset at a certain price. Whenever the price falls below a certain value, it then turns to resistance as market participants tend to sell their previously unprofitable coins right at the breakeven point.
But while on-chain indicators suggest that Bitcoin is preparing for a dive, technical analysis shows no change in market behavior as BTC is still moving with extremely low volatility in the $28,665-$31,149 channel formed. in May.
Unfortunately, the plunge of Ethereum caused by issues on the Beacon chain fueled the panic on an already bearish market but has not actually caused significantly negative movements on assets like Bitcoin.
At press time, BTC is trading at $28,816 and has lost 2.5% in the past 24 hours.
