Bitcoin price forms new support zone

More than 420,000 Bitcoin (BTC) have their cost base around $ 94,000 per currency, according to data from the on-chain Glassnode analysis firm. This would make that price zone a solid support of the current cycle, given the supply concentration that accumulates there.

In the following graph, the source cited shows a price density map (known as URPD, for its acronym in English or “distribution of the price of the UTXO»), which allows identifying the prices levels in which the bitcoins currently in circulation were acquired.

The more intense the color in an area of ​​the graph, greater is the amount of BTC whose last transfer occurred at that price (left axis):

Thus, the previous image shows that the area close to USD 94,000 presents a High density of acquired currenciessuggesting that a large number of market participants consider that price as a valid or attractive entry point.

At the time of this wording, those accumulated 420,000 BTC equals almost 46,000 million dollars. From the technical point of view, this establishes a support zone: a level at which the buying pressure tends to exceed the seller, making it difficult for the price to fall from that threshold.

This indicated support can be evidenced by reviewing the BTC price chart, where it is also revealed that this level has already worked as a support and resistance zone in the past (orange circles):

URPD data offers a valuable tool to analyze the behavior of Bitcoin market participants. By showing where the supply is concentrated depending on the price, allow to infer areas of psychological and financial interest.

In addition, according to Glassnode’s analysis, the fact that this accumulation has been maintained during the consolidation period at the end of April and early May reinforces its validity as a support zone.

At that time, the price of Bitcoin ranged laterally close to $ 94,000, which gave a base for the upward tour that led to the asset to break its historical maximums.

The formation of supports such as the current one becomes particularly relevant in moments of high volatility. On May 23, as Cryptonoticias reported, the sudden decrease in the price of BTC caused the liquidation of 300 million dollars in leverage positions on derivative platforms.

This circumstance was promoted by a new episode in the commercial war imposed from the US government by Donald Trump, in this case in front of the European Union, which led that the price of BTC fell from 111,000 to 107,000 dollars in minutes.

Despite this episode, Bitcoin managed to recover land and, at the close of this article, quotes above 109,000 dollars, according to the cryptootic price calculator.