Bitcoin Bulls Defend $70,000 to $92,000 Range as Critical Support Level
1min read Bitcoin's price range between $70,000 and $92,000 has been identified as a critical support level for bulls, according to a recent report from an on-chain analytics firm. The report highlights several key metrics that indicate this price range could be the final defense line for Bitcoin investors.
The first metric discussed is the "UTXO Realized Price Distribution" (URPD), which shows how the Bitcoin supply is distributed across different price levels based on the last transaction value. Before the recent price crash, very few coins had their cost basis between $70,000 and $92,000, creating an "air-gap" in potential demand. This gap allowed Bitcoin to easily slip into this region during the crash. However, bulls have since participated in buying within this range, changing the URPD and providing better support.
The report also discusses the Realized Price of short-term holders, which measures the cost basis of investors who purchased their coins within the past 155 days. This metric has historically acted as an important reference level during bull-market uptrends. The lower bound of this metric, one standard deviation below the Short-Term Holder Realized Price, is currently situated at $71,000, aligning with the end of the previously mentioned air-gap area.
Additionally, the Active Realized Price, which includes only the 'economical' supply of Bitcoin, stands at $70,000. This level is nearly the same as the one from the other two indicators, suggesting significant confluence across key cost basis metrics. This price region is therefore of particular interest, potentially serving as the final defense line for bulls in the event of a complete capitulation.
Despite the recent price crash, Bitcoin has shown resilience, with bulls providing support in the critical $70,000 to $92,000 range. The confluence of key metrics at this level suggests that it could be a crucial support zone for Bitcoin investors moving forward. As the market continues to evolve, this price range will be closely watched by analysts and investors alike.
