At the moment, Bitcoin is circling a key support level. According to the Global In/Out of the Money chart, which evaluates the distribution of Bitcoin held at different profit and loss positions, there appears to be a significant degree of support in place near the $42,000 price level right now.
The indicator compares the current price of Bitcoin to the price at which the current addresses purchased it. This makes the quantity of supply that is “in the money”—profitable—or “out of the money”—unprofitable—clearly visible. This indication shows that the great majority of Bitcoin addresses are now profitable. Since fewer investors are likely to liquidate their holdings at a loss, this usually indicates a significant degree of support for the price.
Though the indicator offers insightful information, it is not the only factor in determining Bitcoin’s support and resistance levels. Determining possible movement possibilities on the BTC/USDT chart also heavily relies on traditional technical analysis.
Technically speaking, Bitcoin has been putting the 50-day EMA to the test. Traders closely monitor this level for confirmations of bullish or bearish trends. It is common to interpret a persistent position above this line as a positive indicator, while a decline below can point to a negative trend.
Going forward, the recent high, when Bitcoin was under a lot of selling pressure, is the main resistance to keep an eye on. To confirm a bullish continuation, Bitcoin would need to break over this barrier if it maintains its present levels and rises. On the other hand, if the price were to drop below the 50-day EMA, the 200-day EMA would be the next crucial support level and a good place for long-term investors to make a purchase.
The combination of conventional technical analysis with the GIOM indicator provides a comprehensive view of Bitcoin’s current market position. The IntoTheBlock indicator’s strong $42 trillion support level points to a solid foundation where a sizable percentage of investors are hanging onto their holdings, offering some crucial psychological price stability.
