Bitcoin‘s price surge on Wednesday to the $87,000 threshold has reignited bullish sentiment in the market. However, the flagship asset’s renewed upward strength has briefly weakened, dropping to the $85,000 level. During this slight movement, a key strong support zone was identified during BTC’s recent journey.
Next Strong Support Zone For Bitcoin Identified
Following recent market instability, Bitcoin is beginning to show indications of a slow recovery and stability. On-chain expert and trader BorisVest has identified a significant support zone that could be crucial to BTC’s future performance.
In the CryptoQuant quicktake post, the expert points to a strong support zone between the $65,000 and $71,000 price range. The identified support zone seems to be acting as a critical foundation for bullish momentum, potentially preventing further downside risk.
The on-chain expert highlighted that BTC market dynamics indicate that the Active Realized Price is around the $71,000 mark. Interestingly, this crucial level excludes long-dormant coins and helps traders establish a support level based on more current market action.
While the Active Realized Price is around the $71,000 level, the True Market Mean Price is sitting at the $65,000 mark. BorisVest noted that this level provides a more precise assessment, showing that the $65,000 point is a critical support area in Bitcoin’s market dynamics.
By defining the region between the Active Realized Price and the True Market Mean Price, which serves as the strong support zone, BorisVest expects a sizable amount of demand to be met in this area should the price drop in the near future. As a result, $65,000 to $71,000 is the present strong and close-by support zone.
According to the expert, purchasing the flagship asset in this range would result in substantial profits in the long term, with expectations of an impending major rally to a new all-time high before this cycle comes to an end.
Should Bitcoin’s price drop to this zone, BorisVest noted that weak hands might choose to sell their coins. Meanwhile, strong hands are most likely to purchase more BTC and open new positions in order to establish themselves for huge gains once the price resumes its uptrend.
BTC’s Market Value Witness An Upswing
BTC is demonstrating upside potential once again as bullish momentum builds gradually. Santiment, a leading financial and on-chain data platform, reported that Bitcoin’s market value saw a slight growth following a recent attempt at higher targets.
Santiment highlighted that BTC’s market value clawed its way back to the $87,300 mark, while altcoins are still lagging behind the asset. The move shows that Bitcoin is stabilizing, prompting traders to watch closely for confirmation of a sustained rebound. Data from Santiment reveals that the entire crypto market cap is still down by about 7% despite the slight upswing of +0.2% in BTC’s price in the past week.
Featured image from Unsplash, chart from Tradingview.com
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