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According to crypto analyst Ali, Bitcoin, the leading cryptocurrency by market capitalization, might be poised to establish $66,000 as a key support level, fueled by significant accumulation by a large number of addresses.
On-chain data indicates that 1.54 million addresses have collectively purchased 747,000 BTC at this level, suggesting strong investor confidence and reinforcing bullish sentiment on the market.
"Bitcoin aims to secure $66,000 as support, where 1.54 million addresses bought 747,000 BTC," Ali said in a tweet.
If this move by Bitcoin bulls turns out successful, the next critical resistance level for BTC, according to Ali, might be between $69,900 and $71,200.
Bitcoin increased modestly to begin the week as the network completed its fourth halving on Friday, lowering the incentives offered to Bitcoin miners.
At the time of writing, BTC had risen 1.97% in the previous 24 hours to $66,210. The Bitcoin halving reduces the rewards given to miners in half and occurs around once every four years, as stipulated by the Bitcoin code.
Many investors expected little price action in Bitcoin around the halving since it has typically taken many months for the impact to be reflected in the price of Bitcoin. However, JPMorgan believes Bitcoin faces some near-term downside risk.
Tomiwabold OlajideHowever, the good news is that Bitcoin is currently positioned right on top of a key demand zone. While it is currently seeking to establish support at the $66,000 level, the $64,800 level comes next into view as a strong support level, with 1.66 million addresses having acquired BTC around here.
According to IntoTheBlock, the $64,800 price point could potentially act as a strong support level should the market experience further downward pressure.
According to the latest CoinShares data, digital asset investment products saw outflows totaling $206 million for the second week in a row. The data reveals that enthusiasm among ETP/ETF investors is waning, most likely due to predictions that the Fed would retain interest rates at these high levels for longer than projected.
Bitcoin witnessed $192 million in outflows, but few investors recognized this as an opportunity to short, with short-Bitcoin outflows totaling $0.3 million.
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