After climbing up to a record of about $ 123,000 in the second week of July, the action of the Bitcoin price for the rest of the month was largely unstable. However, the peak cryptocurrency dropped to a level just above $ 115,000 on Friday 25 July. This abrupt drop has arrived with the demand on the market: is the event over?
Here’s how $ 115,000 could be fundamental for the price of BTC
In a recent post on the Social Media X platform, Pundit Crypto Burak Tamaç highlighted the relevance of the region below the level of $ 115,000 at the price of BTC. This chain observation, which is based on the URPD of distribution of the BTC offer, showed how the price of Bitcoin could take place in the near future.
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The URPD metric of the offer distribution keeps track of the amount of supply of Bitcoin lastly moved or transferred to certain price levels. This metric is specifically useful for identifying potential support areas (demand) and resistance (offer).
Tamaç underlined on X that there is a significant void in the distribution of Output of Transaction Output (UTXO) of Bitcoin just about the $ 110,000 and $ 115,000 band. This means that there have been relatively less significant transactions in this price region in the recent past.
However, this UTXO gap is located above a price region (from $ 90,000 to $ 110,000) with a significant investor activity. Considering the level of activity within this area, there is a greater probability that the main cryptocurrency will find a support pillow within the UTXO gap.
In this context, the support must be higher than the price level of $ 110,000. As mentioned above, after Bitcoin has reached a new price of all time, the main cryptocurrency entered a consolidating phase, where it has moved mainly laterally in the second half of July. During this period of undecided price action, it can be observed that the price of Bitcoin did not drop below the price of $ 115,000.
This means that the $ 110,000 and $ 115,000 area is probably where a new UTXO support has been established. If Bitcoin prevails above this price level, we can expect to see a continuous bullish momentum. The downside, if the support area of $ 110,000-115,000 fails, the flagship cryptocurrency could experience a serious sale.
Bitcoin price at a glance
At the time of drafting this document, Bitcoin is evaluated at around $ 118,050, reflecting a jump of almost 2% in the last 24 hours.
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First floor image from Istock, TradingView chart