The Bitcoin outlook is positive, as long as this remains true, according to an analyst.

An analyst has clarified that as long as the price of Bitcoin remains above this level, the outlook for the cryptocurrency should remain positive.

Bitcoin’s Strong On-Chain Support: A Bullish Outlook

Bitcoin Support & Resistance

Bitcoin, the world’s most popular cryptocurrency, has been on a rollercoaster journey in recent times. However, an analyst has shed some light on the current situation, suggesting that as long as Bitcoin stays above the $41,800 mark, the outlook remains bullish.

In a detailed analysis, the expert, Ali, explores Bitcoin’s on-chain support and resistance levels. On-chain analysis involves assessing the strength of support or resistance levels based on the amount of Bitcoin purchased by investors at those levels. The chart above represents the distribution of Bitcoin across different price ranges, showcasing the concentration of holder cost basis.

The $41,800 to $43,100 range stands out as the most crucial support barrier, as it houses the acquisition price of the majority of Bitcoin addresses. Approximately 2.4 million addresses acquired 1 million BTC within this range. The cost basis of investors in these ranges plays a significant role, as a spot price retest can affect their profit-loss situation.

During a retest, a holder in profit may be inclined to buy more Bitcoin, believing that the same level that proved profitable earlier will do so again. On the other hand, loss holders might be compelled to sell at their break-even level, fearing the cryptocurrency’s decline and ending up in a loss once again.

When a large number of investors have their cost basis within a narrow range, their buying and selling moves can have a significant impact on the market. With a dense concentration of investors between $41,800 and $43,100, these prices could act as strong support for Bitcoin. Therefore, as long as Bitcoin maintains its position above $41,800, the outlook remains bullish, according to Ali.

Bitcoin Price Chart

Furthermore, the lack of major resistance levels above the current price strengthens the potential for Bitcoin to stay at its current levels or even push towards higher ones. This suggests that Bitcoin has room to grow in the near future.

BTC Price Analysis

Bitcoin’s price has been gradually recovering after the recent crash, edging closer to the $43,800 mark. The chart above showcases Bitcoin’s performance over the last few days.

While it’s important to note that cryptocurrency prices are inherently volatile and subject to market forces, analyzing on-chain support and resistance levels can provide investors with valuable insights to make informed decisions.

Q1: What are the other notable support and resistance levels for Bitcoin?

A: Along with the $41,800 to $43,100 range, there are several other important levels to consider. The analyst’s analysis emphasizes the significance of the range just above the current price. Higher levels don’t seem to carry the cost basis of as many investors, indicating potential for Bitcoin to continue its upward movement without significant roadblocks.

Q2: What are the potential future trends for Bitcoin?

A: While it’s impossible to predict the future with certainty, understanding current on-chain support and resistance levels can offer valuable insights. Based on the analyst’s assessment, as long as Bitcoin remains above $41,800, the overall outlook remains bullish. However, it’s essential to stay updated with market developments, news, and regulatory changes to make informed investment decisions.

References

  1. “Analyst Predicts 76% Lido DAO Rally If This Ascending Triangle Break Happens” – Read Article
  2. “Crypto Hacks Cost $1.8B in 2023: ENS Token Surges” – Read Article
  3. “Ethereum Mega Whales Continue To Buy: Do They Know Something You Don’t?” – Read Article
  4. “Bitcoin Design Foundation Launches: Supporting Design in the Bitcoin Ecosystem” – Read Article
  5. “Bullish Sentiment Grows as Centralized Exchanges See Record Outflows in 12 Months” – Read Article
  6. “Bitcoin Price Rally Could Breach $50,000 This Month, Says Matrixport” – Read Article

Remember, cryptocurrency investments come with risks, and it’s crucial to do thorough research and consult with professionals before making any financial decisions. Share this article with your friends and followers to spread the knowledge!

📢 What are your thoughts on Bitcoin’s current price levels and its future outlook? Have you invested in cryptocurrencies? Let us know in the comments below! 💬

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a professional before making any investment decisions.

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