A popular cryptocurrency analyst explained how Bitcoin’s price could be at risk of falling further given the current distribution of BTC supply around the price.
This Bitcoin price range maintains a critical supply barrier
In recent post on Platform X, prominent cryptocurrency expert Ali Martinez discussed how Bitcoin’s price could fall even further. The justification for this bearish projection is based on the average costs of several BTC traders.
Data from IntoTheBlock shows that approximately 5.45 million addresses purchased approximately 3.03 million BTC at a price range of $64,300 to $70,800. As Martinez emphasized, this has created a significant supply barrier in this price range.
For context, a supply barrier refers to the price range at which a immense amount of cryptocurrency has been purchased. From the size of the dots in the chart below, Bitcoin currently has a significant supply barrier above it.
A graph showing the distribution of BTC supply around various price ranges | Source: Ali_charts/X
This price range becomes especially significant when the price of Bitcoin falls below this level, as BTC holders in the supply barrier may start selling to limit their losses. This could lead to increased selling pressure and potentially a stronger correction in the price of the most significant cryptocurrency.
Furthermore, large-scale landings and continued price declines could negatively impact market sentiment, causing panic among other investors. If selling pressure is significant, it may boost downward pressure on the BTC price.
At the time of writing, Bitcoin is trading at around $64,460, reflecting just a 0.2% gain in the last 24 hours.
Bitcoin miners capitulate
Typical investors may not be the only class of participant contributing to selling pressure on Bitcoin’s price right now. The latest discovery about the chain shows that Bitcoin miners have also been dynamic on the market in recent weeks.
According to data from To the BlockBitcoin miners have offloaded over 30,000 BTC (worth about $2 billion) since June. This marks the fastest rate of decline in BTC miners’ reserves in over a year.
Blockchain analysts have linked this sell-off to the reduced profitability of miners following the recent halving. During the fourth halving, which took place in April 2024, the miner’s reward dropped from 6.25 BTC to 3,125 BTC.
The price of Bitcoin attempts to cross $65,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
