This Bitcoin (BTC) Support Level Could Flip to Resistance if Broken
The weekly recovery of over 7% has pushed bitcoin’s price briefly above $67,500 – a level not seen in almost a month. The world’s leading crypto asset is currently eying to establish a new peak.
With the latest upward price action, BTC has found new support. If flipped, however, this level could also prove to be a major resistance area.
$61.5K: Crucial Level Emerges
The level of $61.5k could potentially serve as strong support for the asset when considering the Short-Term Holder (STH) Realized Price, a metric that reflects the realized capital of those BTC holders who have held their coins from a day to six months.
This group of investors makes up 53.48% of the total market cap and hence carries a significant weight.
Within this cohort, CryptoQuant identified the 0-day to 1-week Bitcoin STH, capturing 10.6% of the market, closely tracks the spot price, and thus often does not indicate significant variance. Meanwhile, the 1 week to 6 months group, accounts for 47.78% of the market provides a more accurate reflection of short-term trader actions and sentiment.
Notably, the 1-3 month holders who entered during March’s rally now command more than 30% of the realized cap, reflecting a substantial transfer of volume from long-term to short-term holders.
This sensitivity of investors to the STH realized price could lead to $61.5k acting as a pivotal level, as per CryptoQuant’s analysis, which, if breached decisively, may flip from a support to a strong resistance.
New Peak for Bitcoin Soon?
Bitcoin’s price has improved since last week and is currently hovering a little below $67,500 after surpassing this level over the weekend. The level has been deemed noteworthy by 10x Research’s latest newsletter as well, which stated that a break above could lead to new all-time highs.
“Bitcoin’s price action has significantly improved since last week. Prices have rebounded towards their late April resistance zone (67,500), surpassing the early May highs (64,000). A breakthrough above 67,500 could potentially lead to new all-time highs, a scenario that our Bitcoin ETF model predicts.”
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