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- Bitcoin’s price rises to $118,908, but trading volume drops 44.38% to $81.05 billion over the past 24 hours.
- A recent peak at $124K caused a 4.5% correction, as traders focus on key support and resistance zones.
- Support levels at $113K and $101K are crucial for Bitcoin’s momentum, determining if it will sustain its rally.
At the time of press, Bitcoin is trading at $118,908, with a 2.07 percent gain in the past 24 hours. Although it has increased, its trading volume has declined by a huge margin, decreasing by 44.38 percent to $81.05 billion. The price of Bitcoin has increased by 8.95% over the last week which indicates continued demand for the cryptocurrency.
Source: CoinMarketCap
CryptoQuant revealed that following a recent surge, Bitcoin topped at $124,000, in line with the +1 standard deviation (STD) of the Short-Term Holder Realized Price. This price point has turned into a local peak, resulting in a 4.5% price rebalancing. Traders are presently targeting areas of high support and resistance in an attempt to identify the direction of Bitcoin.
Bitcoin Support and Resistance
The on-chain data of Bitcoin, as provided by the Realized Price model, provides the critical levels of support and resistance. These levels signify points that investor behavior has traditionally affected price response. Traders can effectively forecast the possible price direction when interpreting these zones.
Source: X
The current level of resistance to Bitcoin is at $124,000, which is the plus-1 standard deviation of the short-term holder realized price. Such a level is normally an indication of profit taking and corrections in the price. A move beyond this level of resistance might result in a stronger resistance target at the $136,000 level, which is current +1 standard deviation of holders by less than one million BTC. This region is typically accompanied by overbought periods, which further price consolidation may occur.
Critical Support Levels
The critical level on the support side is $113,000. This position is equal to +0.5 standard deviations above Short-Term Holder Realized Price. It can be used dynamically as consolidation support. The other crucial support level is $111,000, which is a breakeven point to investors who have entered over the previous month. This provides a psychological zone of support, which is important to the market behaviour.
Source: X
The highest support zone is at $101,000, which is the lowest point of the Short-Term Holder Realized Price. The previous existence above this level has been an indicator of strong beliefs among investors and it shows a likely bullish trend. Any fall below this number may represent a slowing down of the momentum and potential downward price movement.
As Bitcoin approaches such significant levels, traders will be more focused on price action. The on-chain support and resistance zones will be major factors in determining whether Bitcoin will sustain its rallying momentum or correct further.
