While the price of any cryptocurrency is inherently volatile, Bitcoin is in a pivotal position. Research from Into The Block suggests that there’s significant support for the coin below it, and yet strong resistance above it.
This information was brought up in a Twitter thread from the company. How they reached this conclusion was based on machine learning and advanced statistics when analyzing the market.
The model suggests that 1 million bitcoin addresses holds a total of roughly 830,000 bitcoin (valued at 8 billion USD) that were bought at the 9,800 USD level. The firm determines that this purchase acts as a barrier to the coin, preventing it from rising.
On the other hand, there are almost 900,000 wallets which have accumulated 732,000 bitcoin (7 billion USD) that were bought at lower levels. What this means in theory is that these purchases create a strong support for the price bitcoin is at right now.
“The analysis provides a granular view of crypto investors positions which are susceptible to near-term price movement” stated Into The Block. They also wrote that their model could also be used along with traditional technical analysis, stating:“Given that we’re looking at individual crypto investor positions, the IOMAP (In/Out of the Money Around Current Price) analysis can be used to complement traditional support/resistance models by quantifying the positions of individual crypto investors.”
In short, Bitcoin is currently at a very interesting point.