New data from crypto analytics platform IntoTheBlock indicates that Bitcoin (BTC) is facing further downside pressure.
According to the market intelligence firm, the crypto king’s recent drop below $60,000 – a critical demand zone historically – could cause it to see further price cuts.
“Bitcoin has breached its $60,000 support level, a critical demand zone. This move leaves over 16% of BTC holders in a loss position. Historically, demand just below $60,000 has been weak, suggesting further downward pressure. The next significant demand zone lies between $40,000 and $50,000.”
However, IntoTheBlock notes that BTC whales have been accumulating the top crypto asset by market cap around the $60,000 level over the last 30 days, suggesting buy pressure at that price.
“The chart below shows the netflow of wallets holding more than 0.1% of the Bitcoin supply. This data shows that over the past 30 days, large Bitcoin whales had a positive netflow of more than 55,000 BTC, signaling accumulation.
The peak in this accumulation was strongest when Bitcoin recently dipped to $60,000, suggesting substantial buying pressure from these large holders at this price level.”
The analytics platform concludes its analysis by noting that activity over BTC has been the highest it’s been since mid-April.
“Bitcoin activity is on the rise! The number of active BTC addresses crossed 900,000 yesterday, hitting levels not seen since mid-April. This peak is part of a bigger trend, as activity has been slowly increasing since early June.”
Bitcoin is trading for $57,432 at time of writing, a 4.6% decrease during the last 24 hours.
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