The $30,000 Question: Will Bitcoin Push Through or Succumb to the Selloff
- The $29,000-$30,000 price range could form an extreme resistance level for BTC.
- The accumulation is intensifying as many expect BTC’s price to claim the $30,000 mark soon.
As many expect when Bitcoin [BTC] will reclaim his $30,000 psychological prize tag, pseudonymous CryptoQuant analyst Seashell chain has found that the $29,000-$30,000 price range may represent an extreme resistance level for BTC.
According to the analyst, BTC’s price may experience several corrections before breaking through these resistance levels.
Is your portfolio green? Check out the Bitcoin Profit Calculator
Pay attention to these UTXOs
Tarekonchain’s opinion came after an assessment of BTC’s UTXO (Unspent Transaction Output) index for coins within the age range of 2-3 years and held by long-term investors.
According to the analyst, the realized price for this category of coins is $29,700, making the price mark a critical resistance level. Moreso, the UTXO ratio for this age group is 12.64% of BTC’s total UTXOs, indicating that there could be a significant selloff of BTC holdings.
Furthermore, the realized price for the 6-12 month index is $28,200, below the 2-3 year interval. Tarekonchain found that “historically, whenever there was a crossover between these two indices, a price correction occurred.”
With a crossover set to happen, a potential correction in BTC’s price could be underway.
Source: CryptoQuant
Woominkyuanother pseudonymous CryptoQuant analyst, warned that BTC’s 10K+ UTXO value band formed another UTXO category to watch out for.
According to Woominkyu, “the move to the 10K+ UTXO value bands when Bitcoin was below its ‘realized price’ has been interesting.”
The movements mirrored those between March and April 2020 during the outbreak of the coronavirus pandemic. These movements may indicate that large owners of BTC are accumulating the cryptocurrency at a low price, the analyst believed.
Warning traders and investors to take note of these UTXO movements when making investment decisions, Woominkyu concluded:
“Based on past examples, this group usually buys when the price is low and sells when the price is high, so it’s always worth keeping an eye on their UTXO movements.”
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2023-24
More purchases, fewer sales
While BTC witnessed increased sales at the onset of the collapse of Silicon Valley Bank (SVIB) due to a sudden drop in the coin’s value, the latter has seen a depletion in the amount of BTC held on exchanges.
According to data from CryptoQuantBTC’s Exchange Reserve was 2.18 million at press time and has been on a downward trend since March 19.
Source: CryptoQuant
With the coin’s MVRV ratio still positioned within the positive territory, investors are incentivized to accumulate more BTCs.
At 41.77% at press time, BTC’s MVRV revealed that, on average, holders would generate a 2x profit if they were to sell their coins at the current price.
Source: Sentiment
