Following a market rebound on Friday, Bitcoin (BTC) has since shown little price movement gaining by only 0.42% in the last day. The premier cryptocurrency currently hovers around $63,000 as investors continue to await the traditional bullish surge of “Uptober”. Commenting on BTC’s potential next movement, CryptoQuant analyst ShayanBTC has highlighted key price levels investors should look out for.
Bitcoin Must Overcome Major Resistance To Prevent Crash To $55,000
In a Quictake post on Saturday, ShayanBTC shared key insights on the relationship between Bitcoin’s Realized Price Unspent Transaction Output (UTXO) Age Bands and potential market trends. Generally, the Realized Price UTXO Age Bands is an on-chain metric that provides insights into Bitcoin holders’ behavior. Specifically, it reveals the average price at which certain categories of BTC investors acquired their tokens.
According to ShayanBTC, the realized price for short-term holders of Bitcoin i.e. holders of BTC for three to six months, currently lies at $64,000 while long-term holders of Bitcoin i.e. for 6-12 months presently have a realized price of $55,000. The analyst explains that realized price levels usually serve as strong support as key support or resistance levels in the BTC market. This is usually because they represent the average cost basis for Bitcoin holders and often form psychological price points.
Based on BTC’s current price of around $63,000, the short-term holders’ realized price of $64,000 presents a pivotal resistance level, a triumphant breakout above which signals would indicate the continuation of the asset’s present upward trajectory. However, if BTC fails to break past $64,000 perhaps due to increased selling activity or macroeconomic factors, Shayan expects the asset to fall to around $55,000 i.e. the realized price level for long-term holders.
Interestingly, Shayan’s observations are well reflected on Bitcoin’s daily chart where the premier cryptocurrency has consistently oscillated between $55,000 – $65,000 over the last two months. Should BTC break out of this range-bound pattern, it will need to surpass the resistance at $70,000, which could signal the start of a market bull run.
BTC Network Fees Up By 32%
In other news, Bitcoin recorded $5 million in network fees, representing a 32.4% rise over the last week. According to on-chain analytics company, IntoTheBlock, this development indicates a heightened network activity despite calming market volatility.
At the time of writing, the crypto market leader trades at $62,786 reflecting gains of 2.13% and 9.08% in the last seven and thirty days respectively. Meanwhile, BTC’s daily trading volume is currently valued at $17.57 billion, following a 42.92% decline.
