One analyst has explained how $47,360 could be bitcoin‘s next target if the cryptocurrency can break through the $38,500 resistance wall.
bitcoin URPD Suggests $47,360 Holds Next Major Resistance After $38,500
in a new mail On X, analyst Ali talked about what the levels ahead of btc look like right now in terms of on-chain resistance. The indicator of interest here is the “UTXO Realized Price Distribution” (URPD), which tells us about the number of coins (or more precisely, UTXOs) that were last acquired at the various levels that the cryptocurrency has visited in its history.
Generally, levels that house the cost base of a significant number of investors can be important levels for bitcoin, due to how investor psychology tends to work.
For any holder, its acquisition price is naturally an important level, so each time the price retests that point, it may become more prone to making some type of move. How they may react to the retest may depend on what their profitability status was before the retest.
An investor who was previously in profit might want to take more risks and buy more, as he or she may think that the price would rise again in the short term. On the other hand, a holder who made a loss might simply want to exit at the acquisition price, to at least avoid suffering losses again in the future.
The buying or selling that arises from these new tests can provide support or resistance to the price of the asset. However, as mentioned above, only levels with a large number of investors are really relevant for btc, since just a few users making these buy or sell moves will not mark the price significantly.
The chart below shows bitcoin URPD data, to see where the major cost base centers are for holders.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/Analyst-sets-47000-target-for-Bitcoin-if-this-happens.jpeg" alt="bitcoin URPD” width=”2350″ height=”1456″ loading=”lazy”/>
Looks like the the level just ahead hosts the cost basis of a significant amount of UTXOs | Source: @ali_charts on X
As shown in the chart above, the $37,000 level holds the cost base for a large amount of UTXO, suggesting that the mark should prove to be a strong support wall for the cryptocurrency.
This is certainly a bullish sign for the rally as it means that btc could hold above this level without too much effort and work to build an upward move.
The next level that could represent major resistance could be $38,500, but if bitcoin can successfully overcome this wall, future levels are relatively slim for investors.
You can see from the chart that above $47,000 is where the next resistance limit lies. So Ali believes that if a break above $38,500 occurs, btc could advance towards this level.
btc Price
bitcoin has fallen back towards the $37,000 level, but if the on-chain data explained above is anything to go by, the asset should find support here.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/MlnjUjM2/" alt="bitcoin price chart” width=”1534″ height=”869″/>
btc had broken above $38,000 recently | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, Glassnode.com
