Bitcoin’s slow ascent towards establishing new highs has continuously encountered significant opposition in the past few weeks. As the market currently stands in an uncertain zone, there are several questions and concerns about the future trajectory of the premier cryptocurrency. Below is how the latest on-chain data answers some of these questions
How $117,000 Slowed Down BTC’s Rise
In a September 20 post on social media platform X, Alphractal founder and CEO Joao Wedson reemphasized his early prediction of $117,000 as a critical resistance zone for the Bitcoin price.
Wedson referenced his post published exactly a week ago, which utilized two main on-chain metrics — the CVDD (Cumulative Value Days Destroyed) Channel, and the Fibonacci-Adjusted Market Mean Price — in reaching his conclusion.
For context, the CVDD Channel is centered around the amount of aged capital being sent into the market. This metric is typically used in highlighting zones of long-term support or resistance based on the movement of aged coins.
Also, the Market Mean Price is the cost basis, on average, of all Bitcoin holders. By extension, the Fibonacci-Adjusted Market Mean Price is a metric that shows the average cost basis of Bitcoin, adjusted with specific Fibonacci ratios. It displays mathematical levels of extension or retracement around the Bitcoin average holder’s cost.
According to the analyst, these two metrics had aligned perfectly, pointing out $117,000 as a zone where retracement was likely to occur. The convergence of these metrics showed not just the technical significance of this price level, but also reflected strong indecision in the market.
What’s Next For Bitcoin?
In the same post on X, Wedson pointed out specific price actions to watch out for in terms of Bitcoin’s price progression and what a potential breach could mean.
Looking at the upside case, the analyst explained that a breakout above $118,600 would be a strong confirmation of heightening bullish momentum, which could “open the path for the next explosive move.”
Wedson also warned about a potential downside, which hinges on a break below the $113,700 support. According to the crypto founder, this support breach could lead to a swift decline of Bitcoin’s value to as low as $110,000.
A deeper correction could even drag Bitcoin to as low as $100,000—a price level that may attract institutions for accumulation. As of this writing, the price of BTC stands at around $115,660, reflecting no significant movement in the past 24 hours.
