Bitcoin Retests Resistance: Here’s The Level A Break Could Lead To

Keshav Verma

1 year ago

3 mins read

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Data shows Bitcoin is currently retesting a major on-chain resistance level, and a break above which can potentially lead to a surge in its price.

Bitcoin Has Major On-Chain Resistance Around $67,000

As pointed out by analyst Ali in a post on X, BTC may be able to see a rise towards the $72,900 level if the asset can break the current on-chain resistance barrier.

In on-chain analysis, any level’s potential to act as support or resistance is measured using the amount of Bitcoin that was acquired/bought by the investors around said level.

The analyst has shared the chart for the “UTXO Realized Price Distribution” (URPD) indicator from Glassnode, that reveals how the various levels around the current spot value of BTC are looking like right now based on the density of supply that was last bought at them.

Looks like there is significant resistance coming up ahead at the $72,900 mark | Source: @ali_charts on X

The URPD here is “ATH partitioned,” which means that the price ranges here are defined by dividing the levels between zero and the current all-time high (ATH) into 100 equal partitions.

From the chart, it’s visible that the partition around the $66,990 level carries the cost basis of a notable amount of the supply right now (1.3%). This also happens to be the range BTC is retesting at the moment.

Generally, the cost basis is a special level for investors, and thus, they tend to be more likely to show some reaction when a retest takes place. If a large number of holders share their cost basis inside the same narrow range, then this reaction may result in a scale that could be relevant for the market.

As for what direction this reaction from the holders would be probable to happen depends on the side the retest is happening from. A retest from under (meaning that these holders had been in loss prior to the retest) could lead to a selling reaction in the market.

This is because these investors may not want to risk the cryptocurrency declining again in the future, so exiting while they have the opportunity to at their break-even might be tempting.

As such, retests like these can lead to the asset feeling some degree of resistance. In the current case, the range is notably filled up with coins, so it’s possible that the strength of this resistance would be just as powerful.

From the chart, it’s visible that after this range, the asset potentially faces no strong on-chain resistance barriers until the $72,879 level, which hosts the cost basis of about 1.61% of the supply. “If Bitcoin can break past $66,990, it will likely rise toward $72,880!” says Ali.

BTC Price

Bitcoin has been climbing up in the past day, with its price now reaching the $67,200 level. Should this surge be sustained, the asset would be through the current resistance block.

The price of the coin appears to have been going up over the past couple of days | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, Glassnode.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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