As a seasoned researcher with over a decade of experience in the financial markets, I have seen my fair share of market cycles and trends. The current situation of Bitcoin seems to be quite intriguing, and the $66,000 level is indeed a crucial one to watch.
A crypto analyst has pinpointed the $66,000 mark as a crucial level for the Bitcoin price and its trajectory over the coming weeks.
Bitcoin Price Needs To Climb Above $66,000 — Here’s Why
Crypto analyst Ali Martinez recently discussed an intriguing insight about Bitcoin’s price on the X platform. His observation focuses on the “warm supply realized price,” a metric calculated by determining the typical buying cost of Bitcoin that hasn’t been transacted for one to three months.
By its very definition, this price reflects data from more contemporary supply statistics, contrasting with extremely current or outdated market dynamics. This statistical measure is particularly valuable as it provides a psychological and technical benchmark for investors.
Generally speaking, when the cost of Bitcoin exceeds its recently supplied value, it signals that newer investors have made a profit. Conversely, if the Bitcoin price falls below the recently supplied value, it suggests that a large proportion of recent investors are experiencing losses, which could lead to selling pressure and potentially trigger a downward trend.
A rise in Bitcoin’s value beyond its current support level of $66,000 (which is its realized price supply) suggests a favorable trend, while falling below this level might signal the onset of an extended downtrend or bear market. Therefore, investors should exercise caution if Bitcoin remains below this level.
— Ali (@ali_charts) August 31, 2024
Based on information from Glassnode, the realized price of Bitcoin stands at approximately $66,000. As per Martinez’s analysis, investors who are bullish on Bitcoin should exercise caution as the market may be volatile if the Bitcoin price persists in facing difficulties below this price level.
This could imply that an extended period with prices below $66,000 may signal the beginning of a prolonged downward trend (bear market), during which the prices might continue to fall due to increasing selling activity.
BTC Price Could Continue To Range Between $58,000 And $65,000
It seems that Bitcoin might not surpass the $66,000 mark soon, according to experts at QCP Capital. Instead, they predict that the price of Bitcoin will stay within a narrow range between $58,000 and $65,000 for the coming weeks.
This projection comes as the Bitcoin market has become somewhat desensitized to the usual bullish triggers. The QCP analysts believe that the price of the flagship cryptocurrency will continue to consolidate until certain positive catalysts ignite the market.
Currently, the Bitcoin price hovers near $58,950, experiencing a minimal decrease of 0.3% over the past day. However, if we look at the weekly picture from CoinGecko, we see that the market leader has dipped by over 8%.
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2024-09-01 15:04