After a record high around $ 123,000 in the second week of July, the Bitcoin price campaign for the rest of the month has largely been turbulent. However, the flagship cryptocurrency fell at a level just above $ 115,000 on Friday, July 25. This abrupt decline came with the expected demand in the market: is the rally over?
Here is how $ 115,000 can be crucial for the price of BTC
In a recent message on the social media platform X, Crypto Pundit Burak Tamaç marked The relevance of the region below the level of $ 115,000 for the BTC price. This observation on the chain, which is based on the BTC food distribution URPD, showed how the Bitcoin prize could play in the near future.
Related lecture
The Supply Distribution URPD Metric follows the amount of Bitcoin offer that is recently moved or transferred at certain price levels. This metric is specifically useful in identifying potential support (demand) and resistance zones (supply).
Tamaç pointed out X that there is a considerable emptiness in Bitcoin’s Unsproken Transaction output (UTXO) distribution just around the bracket of $ 110,000 and $ 115,000. This means that in the recent past there have been relatively less important transactions around this price region.
However, this UTXO gorge is above a price area ($ 90,000 to $ 110,000) thick with considerable investor activity. Given the level of activity within this zone, there is an increased chance that the most important cryptocurrency will find a support cushion just within the Utxo gorge.
In this context, the support must be above the price level of $ 110,000. As mentioned earlier, after Bitcoin had reached a new all-time prize, the Prime Minister Cryptocurrency entered a consolidating phase, where he was mainly moved sideways in the second half of July. During this period of decisive price action it can be noted that the Bitcoin price did not go under the price of $ 115,000.
This means that the $ 110,000 and $ 115,000 zone is probably where a new UTXO support has been established. If Bitcoin is above this price level, we can expect that they will see a continued bullish momentum. On the other hand, if the support zone of $ 110,000-115,000 failed, the flagship Cryptocurrency can experience a serious sale.
Bitcoin -price at a glance
Bitcoin is currently appreciated at around $ 118,050, which reflects a jump of almost 2% in the last 24 hours.
Related lecture
Featured image of Istock, graph of TradingView