Following Friday’s market rebound, Bitcoin (BTC) has since shown little price movement, rising only 0.42% in the last day. The top cryptocurrency is currently hovering around $63,000 as investors continue to wait for the classic “Uptober” rally. Commenting on BTC’s potential next move, CryptoQuant analyst ShayanBTC highlighted key price levels that investors should keep an eye on.
Bitcoin needs to overcome major resistance to prevent a crash to $55,000
IN Quicktake post on Saturday, ShayanBTC shared key insights on the relationship between Bitcoin’s unspent traded price (UTXO) age ranges and potential market trends. Generally speaking, realized price UTXO age ranges are an on-chain metric that provides insight into the behavior of Bitcoin holders. Specifically, it reveals the average price at which specific categories of BTC investors acquired their tokens.
According to ShayanBTC, the realized price for short-term Bitcoin holders, i.e., BTC holders for a period of three to six months, is currently at $64,000, while long-term Bitcoin holders, i.e., for a period of 6-12 months, currently have a realized price of $55,000 . The analyst explains that realized price levels usually serve as forceful support as key support or resistance levels in the BTC market. This is typically because they represent the average cost basis for Bitcoin holders and often create psychological price points.
Based on BTC’s current price of around $63,000, the low holders’ realized price of $64,000 represents a key resistance level, a triumphant break above which signals would point to a continuation of the asset’s current upward trajectory. However, if BTC fails to break above $64,000, perhaps due to increased selling activity or macroeconomic factors, Shayan expects the asset to drop to around $55,000, i.e. the realized price level for long-term holders.
Interestingly, Shayan’s observations are well reflected in the daily Bitcoin chart, where the main cryptocurrency has consistently fluctuated between $55,000 and $65,000 for the last two months. If BTC breaks out of this range-bound pattern, it will need to break through the resistance at $70,000, which could signal the beginning of a bull market.
BTC network fees increased by 32%
In other news, Bitcoin saw $5 million in network fees, up 32.4% over the past week. According to an on-chain analytics company, to the block, this development indicates increased network activity despite calming market volatility.
At the time of writing, the cryptocurrency market leader is trading at $62,786, reflecting gains of 2.13% and 9.08% over the last seven and thirty days, respectively. Meanwhile, BTC’s daily trading volume is now valued at $17.57 billion, after a decline of 42.92%.
Featured image from The Economic Times, chart from Tradingview
