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NewsBTC 2024-11-21 08:30:02

Analyst Reveals Bitcoin’s Hidden Price Zones: Key Levels Investors Need To Watch

A recent analysis by CryptoQuant analyst tugbachain sheds light on an important aspect of Bitcoin market behaviour — the UTXO Realized Price Age Distribution. This metric plays a significant role in understanding the holding patterns of different investor groups and the market’s response to price fluctuations. The realized price, calculated as the Realized Cap divided by the total supply, is pivotal for identifying cost bases among long-term holders and recent buyers. According to tugbachain, the realized price levels for one-month and three-month periods often serve as critical zones during bull market corrections. These levels provide a lens through which market sentiment, especially among smaller investors, can be analyzed, offering insights into the underlying dynamics that drive buying and selling activity. Related Reading: Is $135,000 Bitcoin’s Current Ceiling? This Model Says So Key Support Levels For BTC The analyst identifies two specific realized price levels—$75,100 and $62,400—as key cost bases for small investors. These levels are significant because they act as support zones during periods of market volatility. tugbachain noted that historically, when Bitcoin’s price tests these levels, it often triggers buying reactions, highlighting the psychological and financial influence of these price points on smaller investors. The CryptoQuant analyst also points out that these support levels reveal not only the patterns of small investors but also how their actions can be influenced, or even manipulated, in a bull market. In bullish cycles, it’s common for market dynamics to amplify fear among smaller investors, often prompting panic selling. tugbachain concluded noting: Monitoring these levels closely can provide valuable insights for making informed investment decisions. Bitcoin Market Performance Meanwhile, Bitcoin has just renewed its all-time high (ATH). So far BTC’s peak stand at $94,784. However, at the time of writing, the asset has retraced slightly away from this peak with a current trading price of $94,523 albeit still up by 3.1% in the past day. While the asset has seen consistent upward momentum in recent weeks, CryptoQuant has shared an interesting analysis on whether it is time to sell or still hold BTC in a recent post on its official X account. Citing major key metrics, CryptoQuant mentioned BTC’s MVRV ratio. Related Reading: Bitcoin’s Market Is Still In An ‘Healthy Growth’ Phase, Says Analyst—Here’s Why According to the on-chain data provider platform, historically, an MVRV ratio greater than 3.7 suggests that Bitcoin has marked a market top. Fortunately, latest data shows BTC’s MVRV still remains below this level with a figure of 2.62 as of November 19. Bitcoin Hits ATH: Is It Time to Sell or Hold? MVRV > 3.7 has historically marked market tops. Explore these 4 additional key metrics to better understand market timing and make more informed decisions. Details below 👇 pic.twitter.com/ewavOhofBR — CryptoQuant.com (@cryptoquant_com) November 19, 2024 Featured image created with DALL-E, Chart from TradingView

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