Bitcoin Price Holds Above $96,000 — Analyst Explains This Level’s Significance
The Bitcoin price appears to have settled within the $92,000 – $102,000 consolidation range, sparking discussions about the coin’s future trajectory. While it remains unclear whether the premier cryptocurrency has enough momentum to forge new all-time highs soon, it would take significant bearish pressure to pull down the BTC price. Nevertheless, the latest on-chain data shows a specific level that could be crucial to the Bitcoin price in the short term. Here’s How $96,000 Could Be Critical To BTC Price In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym ShayanBTC explained how the realized price of a certain investor class could influence the Bitcoin price trajectory in the short-to-mid term. This analysis revolves around the Realized Price of Unspent Transaction Output (UTXO) age bands, which evaluate the holding pattern of different investor cohorts through different realized prices. The UTXO age bands metric measures the average price at which Bitcoin holders purchased their coins compared to how long they’ve held the assets. The relevant age band in ShayanBTC’s analysis is the 1-month to 3-month group, which offers insight into “short-term holders’ behavior and overall market sentiment.” According to the Quicktake analyst, the realized price of Bitcoin holders in this short-term investor cohort has historically served as critical support levels. Historically, the Bitcoin price has often found a cushion above this realized price, suggesting that investors are doubling down on their positions. Source: CryptoQuantRecent data from CryptoQuant shows that the Bitcoin price is currently holding above the realized price of the 1-3 month cohort. As of this writing, this UTXO age band’s average purchase price is around the $96,000 mark. ShayanBTC highlighted the importance of the Bitcoin price holding above $96,000 in maintaining the current bullish narrative. “Holding above this key level reinforces a bullish market sentiment, increasing the likelihood of an extended upward trend,” the Quicktake analyst noted. On the flip side, a breach beneath the crucial $96,000 support could trigger a shift in investor sentiment from confidence to fear. Ultimately, the failure of this crucial level could force some investors to distribute their coins, threatening the upward trajectory of the BTC price. Bitcoin Price Stays Above $96k As of this writing, Bitcoin is valued at around $96,500, reflecting no significant move in the past 24 hours. After starting the week above $100,000, the flagship cryptocurrency quickly fell toward $92,000 due to bearish pressure triggered by new US trade policies. According to CoinGecko data, the price of BTC is down by nearly 4% in the past week. The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from iStock, chart from TradingView Opeyemi Sule Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies. Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it. Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger. When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix. Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K. Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that. Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings. Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better. Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.