November 17, 2023
Crypto analytics firm Glassnode has identified a crucial price range that Bitcoin (BTC) needs to hold in order to avoid a massive sell-off. In their analysis, Glassnode highlights the key support level of $30,000 based on Bitcoin transaction data.
Glassnode's 'Chart Of The Week' video reveals that there is a significant accumulation of coins between $25,000 and $31,000, indicating a strong support zone around the $30,000 mark. This range was dominated by short-term holders, who entered the market with new demand. With the current price being 20% higher than the cost basis of this cluster, it is likely that some of these investors will accumulate more Bitcoin at their cost basis rather than sell if these levels are retested.
Above the $30,000 support zone, there is a gap between $31,000 and $33,000, suggesting fewer transactions were made in this range. This gap poses as a potential weak spot, and if the price falls below $33,000, $30,000 could become the next line of defense.
For traders, the $30,000 to $31,000 range is crucial as it represents the battleground between recent gains and the largest supply cluster. A drop below this range could trigger sell-offs. Therefore, it is important to closely monitor this level for potential buy or sell signals.
At the time of writing, Bitcoin is trading at $37,721, reflecting a 6.2% increase in the last 24 hours.
Glassnode's analysis highlights the significance of the $30,000 price range for Bitcoin. Traders and investors should pay close attention to this level as it could determine the direction of future price movements. Whether Bitcoin holds or folds in this range will have a significant impact on market sentiment and potential sell-offs.
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