IntoTheBlock analysts have shared their view on the next crucial Bitcoin support and resistance levels as the cryptocurrency is now consolidating in the $44,000-$41,000 range for more than 12 days already.
The last support block
According to the "In/Out of Money" metric, Bitcoin is currently trading close to the crucial support level that was founded with the help of previously purchased 615 BTC by 1.2 million addresses.
$BTC price analysis
— IntoTheBlock (@intotheblock) January 19, 2022
1/ Support
The IOMAP reveals that #Bitcoin currently sits at the last level of crucial support
Between $41,18k and $42,47k, more than 1.22m addresses previously acquired 615k BTC. As evidenced by the level of trading activity, bulls are fighting to hold here pic.twitter.com/GpN4cTmKNY
IntoTheBlock's analysis is also being supported by elevated trading volumes close to $41,000 as bulls are trying to hold the increasing selling pressure on the market. In case of a breakout below $40,000, the market might see Bitcoin far below $38,000, as the fund's concentration suggests.
The first significant resistance
As the provided data suggests, the first notable resistance on the market currently remains close to the $48,000 price. Approximately one million wallets are holding 316 thousand BTC with the aforementioned average entry.
IntoTheBlock analysts mark $48,000 as the resistance based on the market rule under which traders tend to sell their previously purchased assets to break even and exit the descending market.
2/ Resistance
— IntoTheBlock (@intotheblock) January 19, 2022
Stiff resistance on its path above $48k.
Around $43.7k, almost 1m addresses are holding 316k BTC, that might want to breakeven on their positions if we reach that level.
After that and to surpass $48k, #Bitcoin must go through 5.7m addresses holding 1.54m BTC pic.twitter.com/8DHKPZYACV
Unfortunately, if Bitcoin even reaches $48,000 and breaks through $14.4 billion worth of sell orders, it might still face a potential resistance wave with 5.7 million entities holding 1.5 million BTC on $48,000 and above it.
Previously, U.Today reported that Bitcoin has reached a strong technical and historical support that could have been observed on a daily chart of the asset. The support zone mentioned in the article correlates with IntoTheBlock's mentioned funds concentration zone.
Godfrey Benjamin
Alex Dovbnya