Cryptocurrency analyst Ali has suggested that Bitcoin, the foremost digital asset by market capitalization, is potentially on track to solidify $66,000 as a pivotal support level, buoyed by substantial accumulation from a multitude of addresses.
On-chain metrics reveal that approximately 1.54 million addresses have collectively procured 747,000 BTC at this threshold, indicating robust investor confidence and bolstering bullish sentiments within the market.
“Bitcoin aims to secure $66,000 as support, where 1.54 million addresses bought 747,000 BTC,” Ali remarked in a tweet.
Should the bullish maneuver by Bitcoin proponents materialize successfully, Ali posits that the next critical resistance zone for BTC could range between $69,900 and $71,200.
Bitcoin commenced the week with a modest uptick following the completion of its fourth halving event on Friday, which effectively halved the incentives provided to Bitcoin miners.
At the time of reporting, BTC had ascended by 1.97% over the previous 24 hours, reaching $66,210. The Bitcoin halving, occurring roughly every four years as prescribed by the Bitcoin protocol, halves the rewards allocated to miners.
Despite prevailing expectations of subdued price movements surrounding the halving event, as historical patterns suggest, JPMorgan has voiced concerns over potential short-term downside risks for Bitcoin.
Nevertheless, an encouraging development is Bitcoin’s current positioning atop a crucial demand zone. While endeavoring to establish support at the $66,000 level, attention is drawn to the $64,800 mark as a robust support level, with approximately 1.66 million addresses having accumulated BTC around this price point.
According to analytics platform IntoTheBlock, the $64,800 price threshold could serve as formidable support should the market encounter further downward pressure.
In tandem with these observations, the latest data from CoinShares indicates that digital asset investment products witnessed outflows totaling $206 million for the second consecutive week. This trend suggests a waning enthusiasm among ETP/ETF investors, potentially influenced by speculations of prolonged high interest rates by the Federal Reserve.
Bitcoin alone saw outflows amounting to $192 million, although a minority of investors perceived this as an opportunity to engage in short positions, with short-Bitcoin outflows totaling $0.3 million.
