Analyst Pinpoints Critical Support Zone For Bitcoin

In line with data from CoinMarketCap, Bitcoin has had an unimpressive week with its market price falling by 4.65% over the past seven days. Nevertheless, distinguished crypto analyst Ali Martinez has released a price alert indicating that the market leader might be set for more losses if it fails to secure a certain support zone.

Bitcoin URPD Chart Shows Potential Correction – Analyst

In an X post on June 15, Martinez stated that Bitcoin must quickly rise above $66,254 else it risks a possible decline to across the $61,100 price mark. Martinez based his theory on the UTXO Realized Price Distribution (URPD) chart generated by the info analytics platform Glassnode.

#Bitcoin must climb back above $66,254 quickly to avoid a possible correction all the way down to $61,100! pic.twitter.com/WMr7jcAVJU

— Ali (@ali_charts) June 14, 2024

For context, an unspent transaction output (UTXO) refers to units of Bitcoin which are unspent after a transaction. Each UTXO has a realized price i.e. the worth the market price on the time of UTXO was transacted. In a UTXO Realized Price Distribution chart, Bitcoin’s supply is broken down based on the realized prices of UXTOs showing how much BTC was acquired at different levels.

This data will be used to check market sentiment, distribution evaluation in addition to support and resistance levels. More importantly, investor behavior can be studied as a high concentration of UTXOs indicates levels at which most investors bought Bitcoin which may translate into a possible resistance or support level.

Source: Ali Martinez

In line with the URPD chart shared by Martinez, 504,619 BTC was purchased at $66,254 thus indicating a robust potential to function a support for Bitcoin amidst its current downtrend. Moreover, the subsequent realized price with the best variety of Bitcoin (191,366) bought is $61,101 representing the subsequent support level should the premier cryptocurrency fail to reclaim the $66,254 price mark.

Bitcoin Price Overview

On the time of writing, Bitcoin trades at $66,151 reflecting a price decline of 1.15% within the last day. In tandem, the BTC’s each day trading volume can also be down by 5.54% and valued at $25.4 billion. Nevertheless, Bitcoin stays within the green on the monthly chart with a 5.80% gain which is a notable positive, especially for long-term traders.

In line with Coincodex, the overall sentiment is bearish nevertheless, the fear and greed index stands at 74 which indicates current optimism in addition to risk-taking behavior amongst investors which highlights a possible for top market volatility.

BTC trading at $66.269 on the 4-hour chart | Source: BTCUSDT chart on Tradingview.com