In a recent analysis, on-chain analytics firm IntoTheBlock hints at Bitcoin's next price action. In a tweet, IntoTheBlock analysts highlight the next Bitcoin price levels to watch, identifying price levels where BTC may be heading next based on buying activity recorded on-chain.
According to IntoTheBlock, the recent high of $35,000 is the next resistance level for Bitcoin. This is where 664,000 Bitcoin holders purchased 340,000 BTC.
If this level is surpassed, according to IntoTheBlock, the next point at which trading activity has been concentrated is around $38,000-$39,000, where 333,000 BTC was acquired. This implies that BTC might target the $39,000 mark if all these immediate hurdles are surmounted.
In the event of a market drop, buying activity appears to be centered just over $30,000, where 553,000 BTC changed hands.
After a strong spike earlier this week fueled by the spot Bitcoin ETF anticipation, the crypto market cooled considerably on Thursday and into Friday.
The lead cryptocurrency by market capitalization rose for seven days in a row, reaching a high of $35,157 on Oct. 24, the highest level in roughly 18 months. This is the longest winning streak since March. Bitcoin fees surged by 44.8% as transaction volume soared during the price boom.
However, as investors took profits after a near-20% gain in the previous week, Bitcoin (BTC) fell to $33,907 at press time.
While Bitcoin prices may face a short-term price drop, analysts predict the cryptocurrency might continue to rise in the long run.
According to IntoTheBlock, institutional interest in Bitcoin is certainly increasing, with transactions exceeding $100,000 and reaching new 2023 highs. Recent spot ETF applications appear to be a driving force, as they were following BlackRock's ETF filing in June.