Bitcoin price has not really impressed over the past two weeks, but seems to have stabilized its movement within a clear consolidation range. In its latest attempt to shine, the leading cryptocurrency faced fierce resistance around $74,000 on Friday, March 13.
Interestingly, the latest on-chain data suggests that the $74,000 resistance may not be the barrier it appears to be. According to a prominent crypto analyst on social media platform
BTC price has clear runway to $82,000: analyst
Market expert Ali Martinez went to the X platform part an on-chain insight into Bitcoin price movement in the coming weeks, with a return to around $82,000 looking more likely without obstacles. This on-chain observation is based on the UTXO Realized Price Distribution (URPD) metric, which shows the following relevant levels for BTC.
Related reading
The URPD metric shows how critical a price level is by tracking the volume of cryptocurrency purchased at a specific level. This is because the ability of a Bitcoin price level to function as a support or resistance zone usually depends on the number of BTC investors who have their cost base at a certain level.
Typically, price levels below current spot value with significant buying activity are often considered key support regions. Meanwhile, levels above the current price and significant investment costs typically act as key areas of resistance.
According to Martinez, Bitcoin price has entered a region of low resistance, with hardly any obstacles until around $82,045. This calls into question the rejection recently faced around $74,000, which is seeing insignificant investor activity according to the UTXO Realized Price Distribution metric.
A move towards this next major resistance in the chain would represent an increase of more than 17% from the current price level, with an upward move of that magnitude not seen so far this year. However, if the Bitcoin price does not find the bullish momentum needed to fuel a rally towards $82,000, the next major support cushion lies around $66,898.
Ultimately, it looks like Bitcoin price is looking to expand its consolidation range, with $82,000 as a potential upper bound.
Bitcoin price overview
At the time of writing, the price of BTC stands at around $70,820, reflecting an increase of just 0.5% in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is up more than 3% over the past seven days.
Related reading
Featured image of DALL-E, chart from TradingView