Bitcoin (BTC) Price Zones That Could Act as Major Support and Resistance Levels Revealed by Analyst

In a new post on X, CryptoQuant author IT Tech has discussed the Bitcoin price levels that could act as support and resistance for BTC.

A crypto analyst has pinpointed the Bitcoin price ranges that could act as major support and resistance centers for the cryptocurrency.

A Large Number Of Investors Bought BTC In these Zones

In a new post on X, CryptoQuant author IT Tech discusses the Bitcoin price levels that could act as support and resistance for BTC. In on-chain analysis, the potential for any price level to behave in this manner lies in the amount of tokens purchased.

Below is the chart from the market intelligence platform IntoTheBlock shared by the analyst, which shows how the price ranges near the current one look in terms of the number of coins that share their cost basis.

The size of the dot in the graph corresponds to the number of coins purchased at the price range. Two ranges have notably large dots: $59,160 to $60,973 and $64,670 to $66,483.

When the analyst made the post, Bitcoin was just above the first of these ranges, but now the coin has dipped into it, which means that the cryptocurrency is retesting the zone.

Any investor’s cost basis is naturally an important level to them, which could make them more likely to take some action when the cryptocurrency’s price retests it. When many holders share their cost basis within the same narrow range, this reaction can occur on a scale that can impact the market.

Almost 1.7 million addresses purchased 965,239 BTC in the range of $59,160 to $60,973, and after the pullback in the price, these holders would be at their break-even.

When the asset retests an investor’s cost basis from above, they are more likely to react by buying more, as they could expect the asset to go up again to put them in profits. This reaction can naturally provide support when it occurs at a large scale.

The analyst has called the range at hand the biggest support zone for Bitcoin. As BTC is now retesting it, it remains to be seen if investors will indeed step in and buy the “dip.”

If BTC finds support and manages to rally, it will have to retest the resistance levels ahead. As mentioned earlier, the range of $64,670 to $66,483 also has a high acquisition level.

Holders at a loss may look forward to a retest of their cost basis to exit at their break-even and regain the entirety of their capital. Large demand zones can thus provide resistance when Bitcoin retests them from below.

This could make the range of $64,670 to $66,483 a significant challenge for the cryptocurrency.

BTC Price At The Moment

At the moment, Bitcoin is trading at around $60,200, which shows a gain of 1% over the past week.

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