- Bitcoin found strong support levels coinciding with its long-term and short-term cost base.
- More than 30% of BTC holders made a profit, indicating positive market dynamics.
Bitcoin [BTC] struggles with a persistent psychological hurdle related to price. However, a recent Glassnode report indicated that Bitcoin had discovered support in key regions despite this persistent obstacle. These regions were consistent with the consensus among long-term and short-term holders.
Bitcoin maintains key support areas
Bitcoin’s price has been experiencing some ups and downs lately, taking a test of the $30,000 price range only to lose momentum and fall back again. During this rollercoaster ride, the spot price remained closely aligned at three key levels, holding firm support from $25,300 to $26,300.
Interestingly, this range of support coincided with the price range observed for both long-term and short-term holders, per Glasnode.
Source: Glassnode
To clarify, the long-term holder’s realized price represented the average purchase price of coins held outside the exchange reserves that have moved in the past 155 days. These coins are considered the least likely to be spent in a day.
On the other hand, the holder’s realized price in the short term reflects the average purchase price of coins held outside the exchange reserves that have moved in the past 155 days. These coins are seen as the most likely to be spent in a day.
Therefore, it is critical to check whether Bitcoin can maintain its position above these key levels as it would indicate a positive trend. Conversely, a drop below these levels would imply weakness in the overall trend.
The price development of the king coin
Bitcoin’s price movement revealed an interesting pattern. After a rally that propelled it to around $27,000, BTC maintained its position within this price range. We observed a consistent support zone between $26,000 and $25,000 by looking at the daily timeframe chart. At the time of writing, BTC was trading near USD 27,200, indicating a gain of over 1.10%.
Source: TradingView
In addition, the long moving average indicated another level of support near the $23,100 price range. On the other hand, the short moving average formed the immediate resistance level, located around the $28,000 price range.
Realized Price and MVRV
Examining the realized price and the market value by realized value (MVRV) chart on Glassnode yielded interesting insights into the current status of Bitcoin. According to the chart, the realized price of BTC was about $20,198.
In addition, the MVRV ratio exceeded one, indicating that Bitcoin’s market value exceeded its realized value.
Source: Glassnode
Read Bitcoin [BTC] Price Forecast 2023-24
One notable observation was that over 32.7% of Bitcoin was currently in profit, based on the data available at the time of writing. This implies that a significant portion of BTC holders have experienced an increase in the value of their investments.
BTC’s next major price move is crucial as it would set the trend that the long-term and short-term holders will face.