Bitcoin’s recent market turbulence has revealed a crucial support level at $83,440, with on-chain data suggesting this price point could determine BTC’s next major move. Recent UTXO analysis had previously warned of potential downside risks, making this support level even more significant for traders.
Critical Support Level Emerges from UTXO Data
According to renowned crypto analyst Ali Martinez, the UTXO Realized Price Distribution (URPD) metric has identified $83,440 as Bitcoin’s strongest support level. This conclusion is backed by substantial on-chain evidence showing that investors accumulated 171,693 BTC (approximately 0.87% of total supply) at this price point.
Key Market Statistics:
- Current Bitcoin Price: $86,383
- 24-hour Price Change: +2.32%
- Distance from ATH: -21.02% ($109,114)
- Critical Support Level: $83,440
- BTC Accumulated at Support: 171,693 BTC
Understanding the URPD Metric
The UTXO Realized Price Distribution is a powerful on-chain indicator that tracks the price levels at which Bitcoin’s unspent transaction outputs last moved. This metric provides crucial insights into potential support and resistance levels by revealing significant accumulation zones.
Dangerous ‘Air Gap’ Below Support
Perhaps most concerning for traders is the identification of an ‘air gap’ between $72,000 and $82,000, where UTXO data shows minimal trading activity. This vacuum of support suggests that if the $83,440 level fails to hold, Bitcoin could experience a rapid descent to lower price levels due to limited buying pressure in this range.
Technical Indicators Signal Potential Relief
Despite these concerns, the Relative Strength Index (RSI) presents a more optimistic outlook. The RSI recently touched 24, placing Bitcoin firmly in oversold territory. Historical data suggests that such oversold conditions typically precede significant price rebounds.
SPONSORED
Trade Bitcoin with up to 100x leverage and maximize your profit potential
Market Implications and Future Outlook
The convergence of strong support at $83,440 and oversold conditions creates a critical juncture for Bitcoin. Traders should watch this level closely, as its defense or breach could determine the cryptocurrency’s trajectory in the coming weeks. A successful hold above this support could fuel a recovery toward previous highs, while a breakdown might trigger a cascade of selling toward the $72,000 level.
Source: Bitcoinist