The $30,000 question: Will Bitcoin push through or succumb to the sell-off
As many anticipate when Bitcoin [BTC] will reclaim its $30,000 psychological price mark, pseudonymous CryptoQuant analyst Tarekonchain has found that the price range of $29,000-$30,000 might form an extreme resistance level for BTC.
According to the analyst, BTC’s price might experience several corrections before breaking through these resistance levels.
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Tarekonchain’s opinion came after an assessment of BTC’s Unspent Transaction Output (UTXO) index for coins within the 2-3 year age range and held by long-term investors.
According to the analyst, the realized price for this category of coins is $29,700, making the price mark a critical resistance level. Moreso, the UTXO ratio for this age range makes up 12.64% of BTC’s total UTXOs, indicating that there might be a significant sell-off of BTC holdings.
Further, the realized price for the 6-12 month index is $28,200, below the 2-3 year range. Tarekonchain found that “historically, every time there was a crossover between these two indexes, a price correction occurred.”
With a crossover set to occur, a potential correction in BTC’s price might be underway.
Source: CryptoQuant
Woominkyu , another pseudonymous CryptoQuant analyst, warned that BTC’s 10K+ UTXO value bands formed another UTXO category to pay attention to.
According to Woominkyu, “the movement of the 10K+ UTXO value bands when Bitcoin was below its “realized price” has been interesting.”
The movements mirrored those between March and April 2020 during the onset of the Coronavirus pandemic. These movements could be indicative of large holders of BTC accumulating the cryptocurrency at a low price, the analyst opined.
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