- Bitcoin remained in the $64,000 price range.
- Nearly 2 million addresses bought BTC in this price range.
Bitcoin [BTC] has recently fallen below a key support level that has been holding for several weeks. Although the support line has passed, there is another, less visible level of support.
If BTC falls below this invisible threshold, it could trigger a series of declines due to a potential sell-off.
This situation is already being exacerbated as miners have sold a record number of BTCs in response to the price drop.
Bitcoin’s past support persists as resistance
AMBCrypto’s analysis of Bitcoin on a daily time chart showed that it recently broke its support level. The level was previously around the $66,000 price range.
This support was characterized by the short-term moving average (yellow line). It remained stable from about May 16 to June 17. This breach signaled a significant shift in Bitcoin market behavior.
Source: TradingView
As of the last update, Bitcoin was trading at around $64,380, showing a slight increase. It also closed with a small gain on June 22, ending the day at around $64,252.
However, these figures are still significantly below the previous support level of $66,000, which has now turned into a resistance level. This indicated a challenge for Bitcoin to regain this price in the short term.
The importance of this price level, around $66,000 for Bitcoin, is underlined by the significant number of addresses that BTC has purchased in this range.
This high concentration of purchases creates a psychological and technical meaning for the price level.
How many addresses bought Bitcoin in this range?
The data of InTheBlok indicated that Bitcoin’s current price range, between approximately $63,493 and $64,931, is particularly significant due to the large number of addresses involved in transactions at this level.
Specifically, approximately 1.9 million addresses within this range purchased BTC. Additionally, the average purchase price for these transactions was approximately $64,237. T
its concentration of buying activity at these levels underlines its importance in the market.
They represent key points at which a significant volume of Bitcoin changed hands, influencing potential resistance or supporting momentum in the market.
Since many investors are at or near this price, it can act as a strong resistance level as the price tries to rise back to that point.
These investors could try to break even on their investments, and possibly sell their holdings, increasing the selling pressure at this level.
Conversely, if the price drops back to this range, the same investors could buy more to average their costs. They can also delay sales to avoid losses, providing potential support.
Miners panicking?
Further data from IntoTheBlock shows that Bitcoin miners have significantly expanded their sales activities since the start of the year.
Miners have sold about 30,000 BTC since June, worth about $2 billion. This sales volume is believed to be the mining community’s highest in more than a year.
Source: IntoTheBlock
This substantial selling by miners could be a response to various market conditions, including price volatility or the need to cover operating costs.
Read Bitcoin’s [BTC] Price forecast 2024-25
However, it plays a crucial role in influencing Bitcoin market dynamics, especially in terms of supply and price.
The importance of miners selling a large amount of Bitcoin becomes even more apparent when we look at the amount of BTC held by different addresses within the current price range.