Bitcoin has experienced a slight decline in its market price over the past week, with a 4.65% drop according to data from CoinMarketCap. Crypto analyst Ali Martinez has raised concerns about potential further losses for Bitcoin if it fails to secure a specific support zone.
Martinez’s analysis is based on the UTXO Realized Price Distribution (URPD) chart provided by Glassnode. This chart breaks down Bitcoin’s supply based on the realized prices of unspent transaction outputs (UTXOs) to show how much BTC was acquired at different levels. It can be used to study market sentiment, distribution analysis, and support and resistance levels.
According to Martinez’s URPD chart analysis, there is a strong potential support level at $66,254, where 504,619 BTC was purchased. This level could help Bitcoin amidst its current downtrend. The next support level is at $61,101, with 191,366 BTC bought at that price. If Bitcoin fails to reclaim the $66,254 mark, it may find support at $61,101.
As of the latest data, Bitcoin is trading at $66,151, reflecting a 1.15% decrease in the last day. The daily trading volume has also decreased by 5.54%, standing at $25.4 billion. Despite these short-term fluctuations, Bitcoin has seen a 5.80% gain on the monthly chart, which is positive news for long-term traders.
While the general sentiment remains bearish, the fear and greed index stands at 74, indicating current optimism and risk-taking behavior among investors. This suggests the potential for high market volatility in the near future.
Bitcoin’s market trends are showing signs of potential downside risks if it fails to secure key support levels. Investors and traders should closely monitor the price movements and market sentiment to make informed decisions in this volatile environment.