Following Bitcoin's breakthrough from $31,300, IntoTheBlock has shared price levels on the chart that traders and investors should look after, as they may bring additional volatility and unexpected price actions.
Money Around Price Metric and first support
For determining local support and resistance levels, IntoTheBlock utilizes a metric that shows the volume of entries around a certain price. We are currently seeing a formation of an important price level at around $30,000, with the total volume of 980,000 BTC.
2/ On the support side, buying activity has been concentrated around the $30,000 level, where 1.65m addresses previously acquired 984k $BTC— IntoTheBlock (@intotheblock) June 6, 2022
What was a key resistance level over the past few days, now became support, making this the price to watch out forhttps://t.co/5B1QuAzhBf pic.twitter.com/ms8OxRtyts
Such a large volume reflects the fact that traders were actively purchasing Bitcoin at that price, most likely betting on the reversal from $29,000.
To break out further, Bitcoin will have to absorb more than 220,000 BTC of volume in the upcoming hours, or we will see another reversal back below $30,000. No major resistances are tracked up ahead.
Right now, only 30% of traders are losing money from Bitcoin trading at $31,420, indicating that there should be no selling pressure from those who are breaking even at the current price.
As for technical support and resistance levels, BTC is currently sitting at the support and moving in the consolidation channel formed since the middle of May. The first resistance on the daily chart is at $40,000.
At press time, Bitcoin is trading at $31,400 and trying to push through the last reversal point on the chart, which is $31,800. Unfortunately, the buying volume is the main problem that keeps the digital gold from starting a new rally to $40,000.