Bitcoin Eyes $30K as Bulls Target Next Resistance Level

• Bitcoin eyes $30k as the next key level based on on-chain data showing underwater holders between current prices and $30k.
• These underwater clusters could drive volatility both ways – selling if bearish but upside if bull momentum builds.
• IntoTheBlock data shows $30k is the critical make-or-break level to watch for Bitcoin’s next major move.

Bitcoin has regained the spotlight following a legal victory by Grayscale this week. And now, $30,000 emerges as the next key milestone, according to on-chain analytics by IntoTheBlock.

Approximately 6.2 million Bitcoin addresses acquired coins between the current price and $30k. This represents around 2.6 million BTC worth of ‘underwater’ holders who are still at a loss on their positions.

These clusters of holders waiting to break even are significant levels that could fuel price moves in either direction.

Bitcoin is back in the spotlight as Greyscale emerges victorious from its SEC lawsuit. The next milestone? $30k. Our on-chain data reveals that 6.2M addresses acquired ~2.6M $BTC between the current price and $30k. These ‘bubbles’ are significant & could burst two ways:

Bearish… pic.twitter.com/EF2cJtjRx4

— IntoTheBlock (@intotheblock) August 31, 2023

Bitcoin depicts two-way breakout potential

On one hand, bearish sentiment could trigger a rush of underwater holders to dump coins and try to recoup losses, adding momentum to the downside.

On the other hand, strong enough bullish catalysts could see Bitcoin blast through these underwater walls without issue on the way to higher highs. An ETF approval is one potential accelerant cited.

The on-chain data highlights the precarious balance Bitcoin finds itself in currently. Though the bulls are still building momentum, the next major test will come as they attempt to break above the $30k resistance zone.

Bitcoin has seen a steady grind higher since its June lows but still remains nearly 50% below its all-time high. The clusters of holders in loss could slow down and temper any parabolic rise.

However, the Grayscale ETF ruling does appear to have improved sentiment around Bitcoin’s outlook. If bullish momentum builds, BTC could swiftly leave the ‘bubbles’ of underwater holders behind as it reaches toward $30k and beyond.

Time will tell whether bearish or bullish forces exert themselves as Bitcoin makes its next move. But on-chain insights highlight the $30k level as the critical battleground to watch. A decisive breakout above could signal a new bull market is underway.