01 June 2023 15:29, UTC
Reading time: ~2 m
Data from the on-chain metrics platform, Glassnode, shows Bitcoin’s price is in a critical region. In a tweet, Glassnode noted Bitcoin’s price behavior around this region as a crucial factor. It could determine the next major trend for the pioneer cryptocurrency.
The #Bitcoin spot price remains in close proximity to 3 significant pricing levels, currently providing robust support around the $25.3K – $26.3K region.
🔴 Short-Term Holder Cost-Basis: $26K
🟠 Adjusted Realized Price: $25.3K
🔵 200 WMA: $26.3K
Sustained elevation above these… pic.twitter.com/Vuvk4O6Wcu
— glassnode (@glassnode) June 1, 2023
Glassnode’s analysis showed Bitcoin to be close to three significant price levels between $25,300 and $26,300. The three indicators Glassnode revealed include Short-term Holder Cost-Basis at $26,000, the Adjusted Realized Price at $25,300, and the 200 WMA at $26,300.
According to Glassnode, a bullish sentiment will hold if Bitcoin’s price continues to elevate above the three significant support levels indicated. A break below the support levels would change the market dynamics. That way, the market would turn bearish and could lead to Bitcoin’s price dropping lower.
Bitcoin has traded in a sideways range for several weeks after reaching a yearly high of $31,035 in the middle of April. It has remained between $28,452 and $25,800 for the past three weeks. Bitcoin’s current behavior suggests an ongoing struggle between the bulls and the bears. The actual position of the flagship crypto is a subject of debate by both sides of the trading divide.
For the bulls, Bitcoin is consolidating and getting set for a pre-halving rally that could initiate the move toward a new all-time high (ATH). For the less optimistic traders, the pioneer crypto is yet to find a bottom and is bound to drop lower before a pre-halving rally.
Speculations will continue until Bitcoin breaks out of the current horizontal channel. The prevailing idea suggests a break to the upside would mean a continuing rally. However, breaking below support implies the price could discover a new bottom before reversing and continuing the rally.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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