Bitcoin Price At Risk Of Further Correction – Here’s How

The popular crypto analyst explained that based on the price distribution of the current BTC supply, Bitcoin’s price could be at risk of further decline.

This Bitcoin price range is creating a significant supply barrier

Recent post On the X-Platform, well-known cryptocurrency expert Ali Martinez argued that Bitcoin’s price could fall further, basing his bearish prediction on the average cost basis of multiple BTC investors.

According to data from IntoTheBlock, around 5.45 million addresses purchased around 3.03 million BTC between the $64,300 and $70,800 price range, which, as Martinez noted, led to the formation of a significant supply barrier at this price range.

For context, a supply barrier refers to the price point at which a large amount of a cryptocurrency is acquired. From the size of the dots on the graph below, it appears that Bitcoin currently has a large supply barrier above it.

A graph showing the distribution of BTC supply around various price ranges | Source: Ali_charts/X

This price range becomes especially important if Bitcoin price falls below this level, as BTC holders within the supply barrier may start selling to cut their losses, which could lead to increased selling pressure and a sharper price correction for the leading cryptocurrency.

Additionally, a large sell-off and continued price decline could negatively impact market sentiment and trigger panic selling among other investors. If the selling pressure is significant, it could put downward pressure on the price of BTC.

At the time of writing, Bitcoin is priced at around $64,460, up just 0.2% in the past 24 hours.

Bitcoin miners are surrendering

Typical investors may not be the only participants contributing to the selling pressure Bitcoin price is facing at the moment. The latest on-chain revelations Bitcoin Miner There has been a lot of activity in the market in recent weeks.

According to the data Into the BlockBitcoin miners have sold more than 30,000 BTC, worth roughly $2 billion, since June, marking the fastest decline in BTC miner reserves in over a year.

Blockchain Analytics attributes the sale to a decline in miner profitability following the recent halving event, which saw miner rewards fall from 6.25 BTC to 3.125 BTC in the fourth halving event, which took place in April 2024.

Bitcoin Price

The price of Bitcoin attempts to cross $65,000 on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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