- Bitcoin found strong support levels that coincided with Long and Short-term Holder Cost Basis.
- Over 30% of BTC holders were in profit, indicating positive market dynamics.
Bitcoin [BTC] has been grappling with a persistent psychological hurdle regarding its price. However, a recent Glassnode report indicated that Bitcoin had discovered pockets of support in significant regions despite this stubborn obstacle. These regions aligned with the consensus among long-term and short-term holders.
Bitcoin maintains key support areas
The price of Bitcoin has experienced some ups and downs recently, undergoing a test of the $30,000 price range only to lose momentum and drop back down. Throughout this rollercoaster ride, spot price remained closely aligned with three significant levels, offering sturdy support from $25,300 to $26,300.
Interestingly, this support range coincided with the pricing range observed for both Long and Short-Term Holders, per Glassnode.
Source: Glassnode
To elaborate, the Long-Term Holder Realized Price represented the average acquisition price of coins held outside exchange reserves, which have been moved within the last 155 days. These coins are considered the least likely to be spent on any day.
On the other hand, the Short-Term Holder Realized Price reflects the average acquisition price of coins held outside exchange reserves, which have been moved within the last 155 days. These coins are seen as the most probable to be spent on any day.
Therefore, monitoring whether Bitcoin can sustain its position above these key levels is crucial, as it would indicate a positive trend. Conversely, a drop below these levels would imply weakness in the overall trend.
The king coin’s price trend
Bitcoin’s price movement revealed an interesting pattern. Following a rally that propelled it to approximately $27,000, BTC sustained its position within this price range. We observed a consistent support zone between $26,000 and $25,000 by examining its daily timeframe chart. As of this writing, BTC was trading at around $27,200, indicating a gain of over 1.10%.
Source: TradingView
Additionally, the long Moving Average indicated another level of support near the $23,100 price range. On the other hand, the Short Moving Average posed the immediate resistance level, located around the $28,000 price range.
Realized Price and MVRV
Examining the realized price and Market Value to Realized Value (MVRV) chart on Glassnode provided interesting insights into Bitcoin’s current state. As per the chart, the press time realized price of BTC was approximately $20,198.
Moreover, the MVRV ratio surpassed one, indicating that the market value of Bitcoin exceeded its realized value.
Source: Glassnode
Read Bitcoin’s [BTC] Price Prediction 2023-24
A noteworthy 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 determine the trend that Long and Short- term holders will face.