Two Critical Levels to Watch in BTC Following the Weekend Wipeout: Bitcoin Price Analysis

Bitcoin’s price dropped over the weekend on the news of escalating tensions between Iran and Israel. Yet, while the market is filled with fear, the bullish trend may not be over yet.

Bitcoin Price Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, Bitcoin’s price has been consolidating in the wide range between $60K and $70K. Following the recent drop, the cryptocurrency has tested the $60K support level.

However, BTC has since rebounded and is currently moving toward the $68K resistance level once again. If the price successfully breaks above the level, market participants can be optimistic that a new all-time high is on the horizon.

Source: TradingView

The 4-Hour Chart

Looking at the 4-hour timeframe, it is evident that the price has swiftly recovered from the $60K support zone. The Relative Strength Index is also fast approaching the 50% level, and the momentum may soon shift bullish.

In this case, the price might once again reclaim the $68K level and rally toward the $75K all-time high and potentially higher. Meanwhile, a breakdown of the $60K level can be disastrous as it could cause a massive drop lower and further halt the bull market.

Source: TradingView

On-Chain Analysis

By TradingRage

Bitcoin Realized Price UTXO Age Bands

Bitcoin’s recent price drop has spread fear among market participants, and some holders have even begun panic selling. Yet, this is not the case for most investors, as many are still making considerable profits.

This chart demonstrates the realized price UTXO age bands. The realized price is a good measure of the average price market participants have bought Bitcoin. Divided by age bands, each band shows the realized price of a specific cohort based on when they have entered the market.

Almost all the holders who have bought BTC in the last month are holding their coins at a loss. It would be logical to assume that some of these investors are currently panic-selling their coins, adding to the recent downward pressure, which can lower the price in the short term.

Yet, as most investors are still in profit, the supply might not be significant and can be absorbed by potential buyers.

Souce: CryptoQuant

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Cryptocurrency charts by TradingView.

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