Bitcoin’s current market conditions are favorable, with the Realised price of the 1m-3m UTXO age band acting as a support for the cryptocurrency’s price.
However, caution is advised as on-chain data analysis reveals that Bitcoin is vulnerable to falling below a crucial support level of $25,645, a level historically associated with bearish market periods.
The Significance of Realised Price and UTXO Age Bands
Realized Price refers to the average price at which all Bitcoins in circulation were last transacted, while UTXO age bands refer to the age of the Bitcoin held in different addresses on the blockchain.
According to on-chain data analysis, the Realised Price of the 1m-3m UTXO age band has historically acted as a level of support and resistance during bullish and bearish market periods, respectively.
Bitcoin’s Vulnerability To Falling Below Key Support Level
Currently, the age band is acting as support for the price of Bitcoin, but experts are warning that this could change if the price falls below a key support level of $25,645.
This level is considered significant because it has historically served as a support level during bullish market periods and a drop below it could indicate a potential shift in market sentiment.
Investors and traders are advised to keep a close eye on Bitcoin’s price movements and the Realised Price of the 1m-3m UTXO age band to make informed decisions about buying or selling the cryptocurrency.
While the current market conditions are favorable, the vulnerability of Bitcoin’s price to falling below key support levels underscores the significance of caution and strategic planning in cryptocurrency investment.
Source: https://coinpedia.org/bitcoin/bitcoin-live-price-on-chain-data-hints-at-btc-price-dropping-to-25k/