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Analysts Identify Next Key Bitcoin Support Level as Price Collapses to $65K

source-logo  thecryptobasic.com 18 June 2024 15:27, UTC

Market analysts identify the $62,000 to $65,000 range as a strong support level for Bitcoin, with over 3 million addresses and significant volume reinforcing this price zone.

Recent analyses of Bitcoin’s price action have identified significant support zones that could play a crucial role in the crypto’s near-term movements. Notably, the price range of $62,000 to $65,000 has emerged as a critical support level, bolstered by the activity of over 3 million Bitcoin addresses.

This range, identified by market commentator Hawk Of Crypto, features substantial buying interest, both in terms of the number of addresses and the volume of Bitcoin tokens accumulated.

Looking at the $BTC price action and correlating it against the buy zones, it shows that the 62k to 65k zone is a big support (S1+S2). In this range, there are more than 3 million addresses that bought #Bitcoin. From, the volume perspective, the 63.7k to 65.6k is a huge support… pic.twitter.com/qr0znWXs7X

— Hawk Of Crypto (@HawkOfCrypto) June 17, 2024

Key Support Zones and Address Activity

The support zones labeled S1 and S2 in the analyst’s chart encompass the price range from $61,770.79 to $65,758.34. Within this range, more than 3 million addresses have accumulated Bitcoin. The dense concentration of buy activity suggests that many holders are unlikely to sell at a loss, thereby creating a psychological floor.

More specifically, from a volume perspective, the range from $63,728.31 to $65,685.84 (S1) has seen the purchase of around 730K BTC. This volume highlights strong support, as many investors have a vested interest in maintaining the price above this level. Hawk Of Crypto notes that breaching the $62K-$65K support zone will require significant selling pressure, suggesting a potential bounce around $64.5K.

Inflows to Accumulation Addresses

In a complementary analysis, Ali Martinez highlighted the inflows to accumulation addresses, which are typically long-term holders of Bitcoin. His data, spanning from May 18, 2024, to June 17, 2024, shows that huge inflows coincide with price stability and increases.

12,700 $BTC were sent to accumulation addresses in the last 24 hours, worth around $840 million! pic.twitter.com/p5OuQxyTeJ

— Ali (@ali_charts) June 18, 2024

Notable inflow spikes occurred on May 12 to 24 and June 4 to 5. Most recently, the market witnessed another inflow surge on June 17, when market participants moved 12.7K BTC into accumulation addresses at a price point of $66.7K.

This inflow suggests a strong accumulation interest at the $66.7K level, potentially indicating a perceived buying opportunity by long-term investors.

However, the current price of Bitcoin, $65,024.05, reflects a slight decline of 1.02% in the last 24 hours and a 2.72% decrease over the past week. Despite the downturn, Bitcoin’s market cap maintains a solid position above the $1 trillion mark, currently standing at $1.28 trillion.