Market Analysis Reveals Key Bitcoin Support Levels
Crypto analyst Matthew Hyland has identified a crucial price level that could confirm Bitcoin’s market bottom, as BTC continues to navigate through volatile territory. According to his technical analysis shared on X, Bitcoin needs to achieve a weekly close above $89,000 to validate a potential market bottom formation.
The analysis comes as Bitcoin trades at $81,745, showing modest gains of 0.7% over the past 24 hours. Recent predictions from Arthur Hayes suggesting a $70,000 bottom have added weight to the current market sentiment.
Key Technical Levels to Watch
- Resistance Level: $90,500 (weekly)
- Critical Close needed: Above $89,000
- Current Support Zone: $69,000 – $74,000
- STH Realized Price: $91,800
The short-term holder (STH) metrics reveal significant pressure points, with the weighted average Realized Price for holders between one week to six months hovering around $91,800. This suggests many recent investors are currently underwater on their positions.
Market Structure and Volume Analysis
The three to six-month STH cohort presents a particularly interesting data point, with their Realized Price at $86,100 forming a strong resistance level. This group represents the largest share of Realized Cap among short-term holders, indicating potential selling pressure around this price point.
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Long-term Holder Support Levels
Long-term holders (LTH) with positions dating back six to twelve months show a Realized Price of $63,700, establishing a strong support level. This aligns with the highest volume profile of the past year around $64,000, reinforcing its significance as a potential bottom.
Recent market activity has been influenced by macroeconomic factors, particularly U.S. President Donald Trump’s trade tariffs and CPI inflation data. The market’s response to these external factors will be crucial in determining whether Bitcoin can maintain its current price levels or test lower support zones.
Market Outlook and Trading Implications
While several indicators suggest Bitcoin may be undervalued at current levels, traders should watch for:
- Weekly close above $89,000 for bottom confirmation
- Potential resistance at $86,100 from STH selling pressure
- Support level validation around $64,000
- Impact of macroeconomic developments on price action
Source: NewsBTC