$30000 is an important psychological area that may determine success or failure in Bitcoin's pursuit of sustained growth.In order for Bitcoin to break through the resistance level around $30000, the trading volume near the previous buy pressure needs to be higher
$30000 is an important psychological area that may determine success or failure in Bitcoin's pursuit of sustained growth.
- In order for Bitcoin to break through the resistance level around $30000, the trading volume near the previous buy pressure needs to be higher.
- The accumulation of Bitcoin is increasing, which may be accompanied by an increase in volatility.
After breaking through $29000, optimism in the market began to rise again, and many people believe that whether Bitcoin [BTC] can break through $30000 is only a matter of time, not whether it will occur. However, according to IntoTheBlock's data, achieving the above price may not be easy. This is because there is potential resistance near the $30000 level.
Bitcoin is in a critical position
Although 73% of Bitcoin holders are currently in a profitable state, the blockchain insight platform points out that there may be resistance due to the accumulation of over 1.4 million addresses in the region.
One of the important reasons for this region is the historical demand for Bitcoin at this level. For example, institutional investors such as Michael Saylor's Microstrategy and Elon Musk's Tesla have purchased large amounts of Bitcoin near these prices.
The same is true for many retail participants. Therefore, some market participants may attempt to achieve breakeven at these points. Conversely, this may hinder the recent upward trend.
Smooth sailing may come soon
In order to avoid this situation, a significant increase in holdings is necessary, as previously more than 496 BTCs may need to be stored in the area between $29796 and $30673. So, Glasssnode's data shows that as of the time of publication, the cumulative trend score of Bitcoin is 0.72.
The accumulation trend score is a value from 0 to 1, reflecting the relative size of entities actively accumulating currency on the chain relative to their BTC holdings.
Whenever the value of this indicator approaches zero, it means that the market is in a distribution mode. Therefore, the above value implies accumulation over distribution.
Therefore, the likelihood of Bitcoin hitting $30000 is much higher than the likelihood of falling below $29000.
As Bitcoin attempts to rise above its price as of the time of publication, its volatility may also surge. This is the view of Korean chain analyst Mignolet. Mignolet expressed his opinion on CryptoQuant, pointing out that the 3-6 month expenditure output age range (SOAB) demonstrates the intensification of price fluctuations.
SOAB is a collection of all used outputs created within a specified age range. This indicator is responsible for revealing the behavior of holders in a specific market atmosphere. Regarding the recent trend, analysts explained that,
A significant fluctuation of around 120000 yuan during this period can serve as a volatility indicator. We may soon see significant fluctuations
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