In his evaluation of Bitcoin's latest value actions, crypto analyst James Van Straten famous that the $70,000 to $80,000 vary has traditionally been one of many least consolidated zones.
In line with Van Straten, Bitcoin spent solely 28 enterprise days on this vary, suggesting that technical help at this degree could also be weak.
After reaching an all-time excessive in October, Bitcoin tumbled again, buying and selling within the $80,000 to $90,000 vary for a lot of December. This correction has pushed costs into territory the place the market has spent comparatively little time up to now. The truth that Bitcoin traded within the $50,000 to $70,000 vary for thus lengthy, particularly all through 2024, means that the help construction within the higher bands is much less developed than within the cheaper price vary.
Van Straten analyzed the previous 5 years of CME Bitcoin futures information and recognized the worth ranges the place consolidation occurred most often. In line with the info, aside from a really brief interval of buying and selling above file highs, Bitcoin spent the least period of time within the $70,000 to $79,999 vary, recording simply 28 enterprise days. Within the $80,000 to $89,999 vary, this era was restricted to 49 days. In distinction, cheaper price zones reminiscent of $30,000-39,999 and $40,000-49,999 have roughly 200 enterprise days, indicating that these areas have been repeatedly examined and type sturdy consolidation zones.
This chart can also be supported by on-chain information. UTXO Realized Value Distribution (URPD) information shared by Glassnode exhibits that Bitcoin provide is considerably decrease, within the vary of $70,000 to $80,000. URPD analyzes the most recent value ranges at which the present Bitcoin provide has switched, revealing the focus of prices available in the market.
Contemplating each futures and URPD information collectively, it’s said that if Bitcoin enters a brand new correction part, the $70,000 to $80,000 vary could possibly be a key consolidation zone, requiring the worth to spend extra time establishing stronger help. Van Straten mentioned it could possibly be technically tough to realize a sustained rally with out spending sufficient time on this vary.
*This isn’t funding recommendation.
