Bitcoin’s price fell sharply tardy last week, falling again below the psychological level of $70,000. According to CoinGecko data, BTC is currently trading at around $69,204, down 0.1% over the past day.
However, on-chain data suggests that the premier cryptocurrency is currently once again testing a significant level of support and may soon return to an upward trajectory.
Nearly 2 million addresses purchased at this Bitcoin price
In recent write to X platform, prominent cryptocurrency expert Ali Martinez revealed that Bitcoin has established a major support area around its current price level. According to IntoTheBlock data, this rating is based on the number of coins purchased at the current price level.
Source: Ali_charts/X
Above is a chart showing the distribution of Bitcoin supply across different price ranges. The size of the dots on the chart represents the strength of the resistance and support zones and the number of coins acquired in each respective price range.
Data from the market research firm shows that around 965,000 BTC worth between $67,353 and $69,383 were purchased across a whopping 1.97 million addresses. According to Martinez, significant buying activity in this price zone has led to a key support area.
In a post on X, the cryptocurrency analyst highlighted the strength and importance of the range between which the BTC price is currently wedged. Martinez noted that the support zone at $67,353-$69,383 must hold for Bitcoin’s price to “maintain its upward momentum.”
Nearly 2 million investors who have their own cost basis around this support area they can double down and accumulate more BTC, and this buying activity – if sufficient – could ensure that support remains mighty. However, if this key support area fails to hold, investors could see the BTC price drop to as low as $65,000.
$1.57 billion in BTC withdrawn from centralized exchanges
On-chain changes have come to lithe that could potentially impact Bitcoin’s price and support keep it above the above-mentioned support level. In another post on X, Ali Martinez stated that investor confidence appears to be increasing at the moment.
A cryptocurrency analyst revealed that significant amounts of BTC left centralized exchanges last week. According to data from Glassnodeover the last seven days, approximately 22,647 BTC (equivalent to over $1.57 billion) has been transferred from cryptocurrency exchanges.
A chart showing the Bitcoin price and balance on exchanges | Source: Ali_charts/X
This massive outflow of crypto funds from trading platforms suggests a change in investor sentiment and strategy. Moreover, it may indicate a up-to-date accumulation where investors do not want to leave their newly acquired assets to centralized exchanges.
Bitcoin price above the $69,000 level on the daily tiemframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
