- Bitcoin remained in the $64,000 price range.
- Almost 2 million addresses bought BTC in this price range.
Bitcoin [BTC] recently fell below a key support level that held for several weeks. Although it has broken through this support line, there is another, less visible support level.
If BTC falls below this invisible threshold, it could trigger a series of declines due to a potential sell-off.
This situation is already worsening as miners have sold a record number of BTCs in response to the price drop.
Bitcoin’s previous support remains resistance
AMBCrypto’s analysis of Bitcoin using a daily chart revealed that Bitcoin recently broke its support level. The level was previously around $66,000.
This support was marked by its short-term moving average (yellow line). It remained stable from May 16 to June 17. This breakout indicated a significant change in Bitcoin’s market behavior.
Source: TradingView
At the last update, the Bitcoin price was at around 64,380 USD, recording a slight increase. On June 22nd, the price also closed with a slight increase, ending the day at around 64,252 USD.
However, these numbers are still well below the previous support level of $66,000, which has now become a resistance level, suggesting that Bitcoin will have a hard time reaching this price point again in the near future.
The importance of this price level of around $66,000 for Bitcoin is underscored by the significant number of addresses that have purchased BTC in this area.
This high purchasing concentration has a psychological and technical significance for the price level.
How many addresses have bought Bitcoin in this area?
Data from IntoTheBlock suggests that Bitcoin’s current price range of around $63,493 to $64,931 is particularly significant due to the high number of addresses involved in transactions at this level.
Specifically, about 1.9 million addresses bought BTC in this area. Moreover, the average purchase price for these transactions was about $64,237.
The concentration of its purchasing activities at these levels underlines their importance in the market.
They represent key points where a significant amount of Bitcoin changed hands, influencing potential resistance or support dynamics in the market.
If many investors are at or near this price, it can act as strong resistance as the price attempts to rise back to this point.
These investors may attempt to break even on their investments and potentially sell their shares, creating additional selling pressure at this level.
Conversely, if the price falls back into that area, those same investors might buy more to cover their costs. They might also wait to sell to avoid losses, thus providing potential support.
Miners in panic?
Additional data from IntoTheBlock shows that Bitcoin miners have significantly increased their selling activity since the beginning of the year.
Since June, miners have sold about 30,000 BTC worth around $2 billion. This sales volume is considered the highest in the mining community in over a year.
Source: IntoTheBlock
These massive sales by mining companies could be a response to various market conditions, including price volatility or the need to cover operating costs.
Read Bitcoin’s [BTC] Price forecast 2024-25
However, it has a decisive influence on Bitcoin’s market dynamics and in particular has an impact on supply and price.
The significance of miners selling large amounts of Bitcoin becomes even clearer when one considers the amount of BTC held by various addresses within the current price range.