For the leading cryptocurrency, the key lies in positioning around the $92,000 level, which aligns with the average “cost” of coins held by speculators. A failure by the bulls to regain control over this level could see the price drop to $71,000, according to Glassnode.
Analysts view this area as one of interest, consistent with several technical and on-chain metrics. Notably, it marks the line of one standard deviation from the average purchase cost of short-term players.
Additionally, from $86,000 to ~$70,000 lies a zone of minimal “trading” of coins based on the URPD indicator.
Experts suggest that, in a sense, the market is testing whether the bulls are ready to support demand in this area. Many acquired coins at prices above $90,000 and are now facing unrealized losses, they added.
From February 26 to March 3, over 150,000 BTC (0.76% of the available supply, equivalent to ~$14.2 billion) changed “hands” in this “air pocket” area below $86,000.
“Prices are beginning to return to the upper boundary of this zone. It remains unclear whether investors from the large cluster above $90,000 will see the rally as an opportunity to exit positions and cut their losses,” concluded the specialists.
Back in April, the former head of BitMEX suggested Bitcoin could drop to $70,000 if stock markets fall by 20-30%. The expert is confident that the leading cryptocurrency remains in a bull run with a target of $1 million.
Earlier, CryptoQuant CEO Ki Young Ju predicted a prolonged consolidation of the asset within a broad range (for instance, $75,000-100,000), similar to what was observed at the beginning of 2024 before prices returned to an upward trajectory.