According bitcoin/” target=”_blank” rel=”nofollow”>CoinMarketCap data, bitcoin has had a lackluster week, with its market price falling 4.65% over the last seven days. However, prominent crypto analyst Ali Martinez has published a price alert indicating that the market leader could suffer further losses if he fails to secure a certain support zone.
Related reading
bitcoin URPD Chart Shows Possible Correction: Analyst
In x.com/ali_charts/status/1801758768906256556″ target=”_blank” rel=”nofollow”>an x post on June 15, Martínez stated that bitcoin needs to quickly break above $66,254, otherwise it risks a possible drop to around the $61,100 price mark. Martínez based his theory on the UTXO Realized Price Distribution (URPD) chart generated by data analytics platform Glassnode.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin It needs to rally back above $66,254 quickly to avoid a possible correction to $61,100! pic.twitter.com/WMr7jcAVJU
—Ali (@ali_charts) twitter.com/ali_charts/status/1801758768906256556?ref_src=twsrc%5Etfw” rel=”nofollow”>June 14, 2024
For context, an unspent transaction output (UTXO) refers to units of bitcoin that are not spent after a transaction. Each UTXO has a realized price, that is, the market price at the time of the UTXO transaction. In a UTXO realized price distribution chart, the bitcoin supply is broken down based on UXTO realized prices showing how much btc was purchased at different levels.
This data can be used to study market sentiment, distribution analysis, and support and resistance levels. More importantly, investor behavior can also be studied, as a high concentration of UTXO indicates levels where most investors purchased bitcoin, which can translate into a potential resistance or support level.
According to the URPD chart shared by Martinez, 504,619 btc were purchased at $66,254, indicating strong potential to serve as support for bitcoin amid its current downtrend. Furthermore, the next price realized with the highest amount of bitcoin (191,366) purchased is $61,101, which represents the next support level in case the leading cryptocurrency fails to recover the price of $66,254.
Related reading
bitcoin Price Overview
At the time of writing, bitcoin is trading at $66,151, reflecting a 1.15% price drop over the past day. At the same time, btc's daily trading volume has also decreased by 5.54% and is valued at $25.4 billion. However, bitcoin remains in the green on the monthly chart with a gain of 5.80%, which is a notable positive point, especially for long-term traders.
According crypto/bitcoin/price-prediction/” target=”_blank” rel=”nofollow”>Coincodex, The overall sentiment is bearish, however, the fear and greed index stands at 74, indicating current optimism as well as risk-taking behavior among investors, highlighting a potential for high volatility in the market.
Featured image from BBC, Tradingview chart
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
