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Bitcoin’s Market Momentum Hinges on Key Price Levels: What’s Next for BTC?
In a recent tweet by glassnode, it was highlighted that the cost basis of short-term holders (STH) at around $92k is a key momentum indicator. This has sparked significant interest among traders and investors as they navigate the current market uncertainty.
According to an analysis spanning six months, two primary accumulation areas have emerged as long-term support and resistance levels: one at $30,000 and another at $60,000. These points will be crucial in determining Bitcoin’s near-term direction.
One of these clusters has formed around the $98,000 mark, where approximately 268,000 BTC has been accumulated. This level, if reached again, may signal a turning point for the market as it is only about 24% above the current spot price. It is possible that this could be considered a significant resistance level by some traders.
On the other hand, the second accumulation cluster at $62,100 has garnered an impressive 228,000 BTC. This zone serves as a crucial support level and can function as a buffer in case of any further dips in the market. In essence, it is a hedge against potential losses.
A critical factor to consider when forecasting Bitcoin’s future performance is the ongoing accumulation at these key levels. These clusters will play a pivotal role in shaping the market’s trajectory in the coming weeks.
The STH Cost Basis: A Critical Momentum Indicator
As of late, there has been an increased focus on the short-term holder cost basis (STH) level around $92k. This is quite significant as it serves as a critical momentum indicator. The data suggests that when this level breaks or gets rejected, it can signal the emergence of either bullish sentiment, leading to a strong uptrend, or a downtrend marked by deeper corrections.
The current situation has traders on high alert, waiting for the next few daily closes to determine whether Bitcoin will continue trending upward or head downward. The probability of reaching the $90k-$69k gap between supply zones creates an interesting dynamic in the market.
Supply gaps are typically filled when there is significant buying pressure. However, given that demand above current prices is nonexistent and thin, it seems like this might not be the case.
In conclusion, the primary focus should shift towards these newly discovered accumulation areas ($30,000 and $60,000) as well as the key resistance level at $98,000 and support area around $62,100.
Source: https://nulltx.com/bitcoins-market-momentum-hinges-on-key-price-levels-whats-next-for-btc/
