As the cryptocurrency community eagerly anticipates the upcoming ETF decision, analysts continue to share their predictions. Ali Martinez highlighted two significant demand zones for Bitcoin, which could play a crucial role in its price movements. These supply walls represent the amount of Bitcoin purchased by addresses within specific price ranges.
Martinez’s analysis shows Bitcoin trading between two substantial supply walls. The size of the dots on the provided graph indicates the volume of BTC acquired by investors in these regions. The areas between $41,200 to $42,400 and $42,400 to $43,700 are particularly noteworthy due to the high demand observed.
In the first range, 723,490 BTC were bought by 1.92 million addresses, while in the second, 706,400 BTC were acquired by 1.67 million addresses. These purchase levels are significant as they represent cost prices for investors, which could influence market behavior if prices revisit these levels.
The reaction of investors during a retest of these price levels could vary. While individual investors’ actions may have limited market impact, a collective response from numerous addresses sharing similar cost bases could lead to significant market effects.
These supply walls may indicate important retest points for Bitcoin, shedding light on investor psychology and trading behavior. Investors in profit may be inclined to buy more at a familiar price range, while those at a loss might consider selling when prices break even, fearing further declines.
Martinez notes that Bitcoin has been trading between two major supply walls during its latest consolidation phase. He suggests that consistent closings beyond these boundaries could help gauge BTC’s trend. The analyst’s chart points to a potential resistance between $46,300 and $47,600, with the next major support likely between $38,600 and $39,900. A breakout above resistance could push BTC towards $47,600, while a fall below support could lead to a correction down to $38,600. Meanwhile, Bitcoin has experienced a sharp rise to $43,500 at the time of writing.