Analysts are keenly monitoring a vital supply zone for the largest cryptocurrency, Bitcoin, as it teeters dangerously close to $70,000. This range is significant because it denotes a pivotal region where a sizeable portion of Bitcoin was purchased.
An important Bitcoin supply zone has been found by cryptocurrency analyst Ali, which is located between $70,180 and $70,600. In this zone, over 450,000 addresses have purchased a total of over 273,000 BTC.
A crucial region on the price chart that frequently serves as a barrier to price increases is the supply zone. Since many Bitcoin were previously purchased there, holders may be looking to break even or take profits, which might raise selling pressure.
https://x.com/ali_charts/status/1793200869955010597
Bitcoin reached highs of $71,980 on May 21 after a consistent climb from lows of $56,500 on May 1 before running into resistance. As of this writing, Bitcoin was down 1.91% to $69,998 from the previous day, continuing its downward trend.
Potential scenarios
As Bitcoin gets closer to the designated critical supply zone, a few things may happen:
A significant volume break over $70,600 for Bitcoin would indicate that the bullish trend is here to stay. This would probably draw in more customers, raising the price and maybe creating a new level of support.
However, if there is a lot of selling pressure on Bitcoin inside this area, it can cause a price rejection and further decline. This would suggest that there is momentary resistance since many holders desire to realise profits.
Another scenario is that Bitcoin temporarily consolidates below this area. This would suggest that before a significant price shift, buyers and sellers are in balance.
Given the massive amount of Bitcoin amassed in this region, market behaviour around the $70,000 mark would be carefully followed as the cryptocurrency contemplates its next move.
Ali thinks that if Bitcoin stays above $65,125, the next local BTC peak before a brief decline at $77,593, is likely based on the MVRV Pricing Bands.
