THE Bitcoin Price suffered a major blow late last week, once again falling below the psychological level of $70,000. According to CoinGecko data, the BTC price currently stands at around $69,204, reflecting a 0.1% decline over the past day.
However, on-chain data suggests that the top cryptocurrency is currently retesting an important support level and could soon resume its upward trajectory.
Nearly 2 million addresses purchased at this Bitcoin price
In a recent post on the platform, prominent crypto expert Ali Martinez revealed that Bitcoin has established a major support zone around its current price. This valuation revolves around the number of coins purchased around the current price level, according to data from IntoTheBlock.
Source: Ali_charts/X
Above is a chart showing the distribution of Bitcoin supply in different price ranges. The size of the dots in the chart represents the strength of the resistance and support zones as well as the volume of coins acquired around each corresponding price range.
The data from market intelligence firm shows that a massive 1.97 million addresses purchased around 965,000 BTC between the $67,353 and $69,383 levels. According to Martinez, significant buying activity within this price zone has led to the creation of a key support zone.
In the article on X, the crypto analyst highlighted the strength and importance of the range between which the BTC price currently sits. Martinez noted that the $67,353 to $69,383 support zone must remain strong for Bitcoin price to “maintain its upward momentum.”
The nearly 2 million investors who have their cost basis around this support zone could double its position and accumulate more BTC, and this buying activity – if sufficient – can ensure that support remains strong. However, if this vital support zone fails to hold, investors could see BTC price fall to $65,000.
$1.57 billion in BTC withdrawn from centralized exchanges
An on-chain development that could potentially impact the price of Bitcoin and help keep it above the aforementioned support level has come to light. In another post on X, Ali Martinez shared this investor confidence seems to be on the rise at the moment.
The crypto analyst revealed that significant amounts of BTC have left centralized exchanges over the past week. According to Glassnode dataapproximately 22,647 BTC (equivalent to over $1.57 billion) has been transferred from crypto exchanges over the past seven days.
A chart showing the Bitcoin price and balance on exchanges | Source: Ali_charts/X
This massive outflow of crypto funds from trading platforms suggests a change in investor sentiment and strategy. Additionally, this could be a sign of further accumulation as investors are unwilling to leave their newly acquired assets in the custody of centralized exchanges.
Bitcoin price above the $69,000 level on the daily tiemframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
