Bitcoin (BTC) has faced a severe decline this week, losing support from above $ 9,500. At the moment, the leading cryptocurrency is struggling to hold the next key support levels, in case it breaks down closer to the lows of $ 8,000.
Bitcoin address data shows strong support
But before that, based on the number of wallets that bought BTC at different prices, Bitcoin had to break through some pretty strong support. Analysis of the amount of money in and out of those wallets shows that BTC has a chance of rebounding higher at $ 8,100 as a local low to the recent recession.
After plummeting to $ 8,500 on Friday, BTC has bounced twice to $ 8,659 from here. At this price, the buying and selling wallet accounts are well balanced. Latest report IntoTheBlock showed that Bitcoin could cause a serious fight around $ 8,600 to $ 8,900, where 873,000 wallet addresses are holding over 643,000 BTC.
If these levels are broken, BTC can find the next support in the range of $ 8,100 to $ 8,300. In this area, protection could come from an even larger group of 810,000 holders, who bought 593,000 BTC at this price.
If they decide to liquidate, the out of wallet address can cause resistance above $ 9,150. But in general, the large number of wallet addresses can lead to “holding” behavior, which makes Bitcoin more resilient.
Short-term context can create additional volatility
Physical BTC ownership may not affect the futures market, at their own discretion. However, general concern about Bitcoin ownership and a potential halving rally are still ahead. At the moment, BTC is looking for a temporary low, with most of the predictions envisioning an early bounce.
The more pessimistic scenarios show a dump below $ 7,000 in case of panic, with unpredictable lows. But based on wallet analysis, there's a lot of support with a large holding ratio that bought from $ 7,000 to $ 8,000.
In the short term, however, the context may depend on fearful effort, as well as futures trading based on a set of different levels of support and resistance.
#BTC UPDATE: Holy Grail Chart BEAR Signal = Entry 8900 exit 8550 pic.twitter.com/b6mioN5wd7
– Crypto Gizmo – Automatic Precision TA Charts (@CryptoGizmoTA) February 28, 2020
Bitcoin also reacted to short-term panic. As the stock market fell, so BTC traders turned to Tether (USDT). As of now, the leading cryptocurrency has been unable to act as a safe haven to counter a sell-off move on global stock markets. But the recent dip still follows a “gold cross” above the daily moving average – likely signaling an upward move, after a short period of panic.
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According to Bitcoinist
Translated by ToiYeuBitcoin