Crypto analyst Ali spotted a dicey situation for the largest cryptocurrency by market capitalization, Bitcoin.
Ali notes that Bitcoin is currently sitting on thin ice as its price remains far away from significant support.
#Bitcoin sits on thing ice! Notice the most important support zone is between $22,785 and $23,595 where 1.34 million wallets hold 450,000 $BTC.— Ali (@ali_charts) June 14, 2023
On the flip side, #BTC faces stiff resistance between $26,000 and $28,250 where 5.18 million wallets bought 2.1 million BTC. pic.twitter.com/2BpxWbNESK
The crypto analyst, citing IntoTheBlock data, notes that the most important support zone is between $22,785 and $23,595, where 1.34 million wallets hold 450,000 BTC. At the time of writing, BTC was marginally down in the last 24 hours at $26,071.
On the other hand, Ali noted that BTC faces stiff resistance between $26,000 and $28,250, where 5.18 million wallets bought 2.1 million BTC.
As traders anticipate the Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve on Wednesday, the cryptocurrency market is still in an indecisive mood. On Wednesday, at 2:00 p.m. ET (6:00 p.m. UTC), the Fed is scheduled to make its interest rate decision public.
The crypto market price action is currently neutral, with few losses being recorded at the time of writing for various crypto assets, as most anticipate a "hawkish" pause in which the central bank keeps interest rates steady while leaving the door open for future hikes.
Given BTC's recent price action, veteran trader Peter Brandt spots a price equilibrium for BTC, which he refers to as "hinge behavior."
On-chain settlement remains quiet
According to blockchain analytics firm Glassnode, on-chain settlement remains quiet as the aggregate transfer volume on the market continues to trade at cyclical lows.
It observes that this week did not see any appreciable uptick in overall transfer volume, remaining at around $2.85 billion per day. This might explain the indecisive price action seen in the market of late.
Meanwhile, according to data from on-chain analytics company Santiment, the supply of Bitcoin on cryptocurrency exchanges has declined to its lowest levels since February 2018.
Since the SEC filed lawsuits against Coinbase and Binance earlier this month, the impact has been particularly significant, with 6.4% of the supply leaving exchanges in the past week.