While uncertainty persists regarding the future price of Bitcoin (BTC) in the cryptocurrency market, renowned crypto analyst Joao Wedson has outlined the critical support and resistance levels that investors should monitor.
Wedson analyzed the cost data of short-term Bitcoin investors (STHs) to assess at what levels the BTC price might recover and how far it could fall in the event of a decline.
According to the analyst’s data, while Bitcoin is trading at $83,608, the MVRV (Minimum Revenue Per Capita) ratio for short-term investors is at 1.13. This data indicates that this group of investors has, on average, approximately 13% unrealized profit.
According to the analyst, the most critical short-term threshold for Bitcoin is at $82,658. For BTC to remain above this level is considered important for a price recovery.
According to Wedson’s analysis, the first significant resistance Bitcoin may encounter in its upward movement is at the $91,051 level. If this area is breached, the next strong resistance point is at $99,444.
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In a bearish scenario, the $82,658 level is considered a critical decision point. According to the analyst, Bitcoin losing this level could increase the likelihood of the price falling to $74,264, which represents the average cost for short-term investors.
Specifically, a drop below the $74,264 level means that short-term Bitcoin investors will, on average, move from unrealized profits to unrealized losses. This is seen as a significant risk that could lead to increased selling pressure in the market and cause investors to sell at a loss.
Wedson’s analysis also lists $65,871, $57,478, and $49,084 as other support levels to watch in the event of a deeper correction. These price zones are considered points where Bitcoin could find support in the event of sharp declines, or where investors’ capitulation tendencies could strengthen.
*This is not investment advice.
Continue Reading: Critical Levels for Bitcoin Revealed: Analyst Says Risk Could Escalate If BTC Falls Below This Price