Crypto analyst Ali Martinez has shared some vital insights into the present Bitcoin (BTC) market based on  UTXO Realized Price Distribution (URPD). Using this metric, the renowned market expert has highlighted key support and resistance levels with a potentially strong impact on BTC’s immediate price movement. 

Following one other week of widespread market uncertainty, Bitcoin prices remain in consolidation, failing to make an efficient breakout above $84,380.

Bitcoin Bull Run: $97,532 Holds Key To Renewed Bullish Momentum

In on-chain evaluation, the Unspent Transaction Output (UTXO) represents the rest of Bitcoin after every transaction which might be used as input in a recent transaction. Due to this fact, the UTXO Realized Price Distribution allows analysts to discover price levels at which Bitcoin’s current supply was last moved. By highlighting price levels with high concentrations of UTXOs, the URPD is a very important metric in discovering resistance and support levels.

In an X post on March 22 by Martinez, data from Glassnode shows a powerful cluster of UTXOs around $83,444 indicating that many investors have their cost basis around this level. Currently, BTC’s price is well above this support level showing intent of a possible upswing. Nevertheless, Martinez notes that a stiff resistance awaits market bulls on the $97,532 price level which also hosts an unlimited amount of UTXOs.

The analyst explains that a successful clearance of this resistance price level would signal a renewed bullish momentum in a BTC market that has undergone significant correction up to now few months. In a highly positive scenario, Bitcoin is prone to surge towards recent all-time highs. Nevertheless, failure to maneuver past $97,532 may force BTC to stay in consolidation and even retrace to lower support levels.

Bitcoin Rearing To Resume Uptrend?

In other developments, Martinez has suggested Bitcoin’s current correction is probably going still ongoing based on the Bitcoin Sharpe Ratio. For context, the Sharpe Ratio determines whether BTC’s returns are currently definitely worth the level of risk involved in the intervening time.

The analyst explains that best market entries have occurred when the Bitcoin Sharpe ratio is at low risk, presenting a good buying opportunity. Nevertheless, the present Sharpe ratio indicates high risk suggesting that prospective BTC investors might have to exercise patience.

Martinez said: 

We’re not there yet, but getting close might signal a chief buying window!

On the time of writing, BTC continues to trade at  $84,075 following a 0.27% price increase within the last 24 hours. Nevertheless, the asset’s day by day trading volume has crashed by 46.41% as market engagement falls.

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