The Bitcoin (BTC) market showcased considerable volatility over the past week, with a descent below $75,000 followed by a rise above $83,000. As the leading cryptocurrency appears to indicate a sustained upward trend, blockchain analytics company CryptoQuant has pinpointed two significant resistance levels that may lie ahead.
Bitcoin Realized Price Indicates Potential Strong Resistance Levels At $84,000 And $96,000
In an X post dated April 11, CryptoQuant released an on-chain analysis of the BTC market, suggesting a potential confrontation with two major resistance levels at $84,000 and $96,000 should Bitcoin continue its current upward movement. These price thresholds are highlighted by the Realized Price metric, which reflects the average price at which the currently circulating BTC supply last transacted on-chain, thus determining the market-wide cost basis.
When Bitcoin trades above these levels, it indicates robust bullish momentum with most holders in profit. Conversely, when BTC falls below this threshold, it reflects negative sentiment as the majority of investors are incurring losses. Consequently, the Realized Price often serves as a vital market pivot, acting as strong support in bull markets and resistant in bearish phases. As per Julio Moreno, Head of Research at CryptoQuant, BTC’s current on-chain realized price stands at $96,000, with a close lower threshold of $84,000.
Interestingly, these two price points have previously functioned as crucial support zones during the earlier bullish phase of the current market cycle. Nevertheless, both areas could act as resistance amid the ongoing market correction. If Bitcoin manages to surpass $84,000 and $96,000, it may indicate the resumption of the bull market, with the potential for the cryptocurrency to reach as high as $130,000. This anticipated gain would represent a 55% increase from the current market prices.
BTC Price Overview
As of now, Bitcoin is trading at $83,180, reflecting a 3.65% increase over the last day. Daily trading volume has decreased by 11.99%, amounting to $39.19 billion.
Amid ongoing macroeconomic changes influenced by US Government tariff adjustments, the cryptocurrency market is exhibiting a strong sense of uncertainty, with assets struggling to establish a clear trend. However, blockchain analytics firm Glassnode notes that Bitcoin investors have created a robust support area at $79,000 and $82,080, where over 40,000 BTC and 51,000 BTC have been accumulated respectively.
In the event of a downturn, these price levels are likely to provide short-term support and stave off further price declines. With a market capitalization of $1.66 trillion, Bitcoin retains its position as the largest digital asset, accounting for over 60% of the overall crypto market cap.
Featured image from CNN, chart from Tradingview.com
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