NewsBTC recently shed light on the precarious position Bitcoin currently finds itself in. Although the leading cryptocurrency is holding slightly above the $108,000 mark, its stability could be threatened if it fails to maintain key support levels at $106,738 and $98,566.
These specific levels represent significant clusters of Bitcoin holders, and a failure to uphold them could potentially trigger a deeper market correction. Crypto analyst Ali Martinez took to social media to highlight these critical support zones, derived from data showing Bitcoin’s purchase clusters.
The data, obtained from Sentora’s In/Out of the Money Around Price metric, shows that the largest current zones of Bitcoin purchases sit at $106,738 and $98,566. These zones are indicative of massive buying activity in recent weeks and could serve as a safety net in the event of a Bitcoin price drop.
The first zone, ranging from $104,982 to $108,190, encompasses approximately 1.68 million addresses, holding a total volume of 1.28 million BTC, with an average price of $106,738. Beneath this zone, a broader group of 1.71 million addresses holds a larger volume of 1.25 million BTC within the price range of $95,248 to $98,566, with an average price of $98,566.
As long as Bitcoin continues to trade above these thresholds, its rally could potentially continue. However, if enough selling pressure breaks these pockets of demand, Bitcoin may enter a volatile price zone with limited buying interest to provide support.
Bitcoin’s journey to new highs is not yet guaranteed, despite the presence of these solid demand zones. Analyst Rekt Capital noted that Bitcoin is currently up against a strong weekly resistance band just under $109,000. To reclaim a more bullish stance, Bitcoin must achieve a weekly close above this resistance line, currently around $108,890, which is acting as a ceiling for its upward rally.
At the time of writing, Bitcoin is trading at $108,160.
