New data from crypto analytics platform IntoTheBlock indicates that Bitcoin (BTC) is facing further downward pressure.
According to the market intelligence agency, the crypto king’s recent drop below $60,000 – a historically critical demand zone – could cause to see further price reductions.
“Bitcoin has breached its $60,000 support level, a critical demand zone. This move leaves more than 16% of BTC holders in a losing position. Historically, demand has been weak just below $60,000, indicating further downward pressure. The next key demand zone is between $40,000 and $50,000.”
However, IntoTheBlock notes that BTC whales have gathered the top crypto asset by market cap around the $60,000 level over the past 30 days, suggesting there is buying pressure at that price.
“The chart below shows the net flow of wallets holding more than 0.1% of the Bitcoin supply. This data shows that large Bitcoin whales had a positive net flow of over 55,000 BTC over the past 30 days, indicating accumulation.
The spike in this accumulation was strongest when Bitcoin recently fell to $60,000, indicating significant buying pressure from these large holders at this price level.”
The analytics platform concludes by noting that activity on BTC is the highest since mid-April.
“Bitcoin activity is increasing! The number of active BTC addresses surpassed 900,000 yesterday, reaching levels not seen since mid-April. This spike is part of a larger trend as activity has been slowly increasing since early June.”
Bitcoin is trading at $57,432 at the time of writing, down 4.6% in the past 24 hours.
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Featured image: Shutterstock/Philipp Tur/Suri Sharma
