A key demand zone has formed just below Bitcoin’s current price due to significant buying interest in this particular zone. On-chain data from IntoTheBlock shows that 2.76 million addresses have accumulated 2.1 million BTC at this price, creating a strong support base. This interesting data comes amidst a serious compression of the Bitcoin price as it continues to trade within a range below $100,000.
Bitcoin Bulls Build Up Demand Safety Net
Bitcoin has remained in a tight trading range below the $100,000 mark for the past seven days, with price action dominated by repeated attempts to break higher and bouts of selling pressure. The first half of last week saw a notable decline, with Bitcoin dipping briefly below $94,000 before finding support at $93,700. This level caused a little rebound of about 6% in the middle of the week, but it wasn’t enough to break above $100,000 as the rally got rejected again at around $99,300.
Data from on-chain analytics platform IntoTheBlock shows that amidst this back and forth, an interesting buying trend among Bitcoin bulls this week has led to the creation of a strong support base moving forward. The data shows that the $97,100 price level has become a key area of interest, with millions of BTC changing hands at this range. Particularly, the data shows that 2.76 million Bitcoin addresses acquired a total of 2.1 million BTC between $95,830 and $98,700, which means a significant buying interest at this level.
This insight was revealed through IntoTheBlock’s In/Out of the Money Around Price metric, which currently tracks the buying distribution of addresses that bought Bitcoin between $83,800 and $106,800.
What Does This Mean For Bitcoin’s Price?
The significance of this new demand zone cannot be overstated, as it represents a substantial base of holders who may step in to defend the price in case of further downside moves. It also provides a better support zone for Bitcoin to finally go on a substantial break above $100,000.
Notably, the ongoing power tussle between buying and selling pressures has seen this demand zone being tested again, with Bitcoin falling in the past 24 hours to now trading within this range. If it holds, Bitcoin could establish a higher low and maintain its bullish trajectory. On the other hand, a breach of this support could cause another retest of the $93,000 support level.
As crypto analyst Ali Martinez noted, the best approach to trading Bitcoin right now is to buy at $92,000 and sell at the $106,000 resistance zone. The analyst also pointed out waiting for a decisive move beyond the $92,000 to $106,000 zone before making aggressive market entries.
At the time of writing, Bitcoin is trading at $96,570.
Featured image from Business Insider, chart from TradingView
