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The Bitcoin price has not had quite the same spark it did at the beginning of the last month so far in June. The premier cryptocurrency has somewhat struggled to break out of a consolidation range since reaching a new all-time high in the month of May.
The Bitcoin price recently succumbed to bearish pressure, falling to around $101,000 on Friday, June 6. While the market leader has enjoyed some resurgence to begin the weekend, a prominent blockchain firm has now identified significant levels i n the event of a return to the $100,000 level in the coming days. Here Are The Next Support Levels For BTC
In a June 6 post on the social media platform X, crypto analytics firm Sentora (previously known as IntoTheBlock) revealed an interesting on-chain perspective on the price of Bitcoin and its latest dip toward $100,000. According to the intelligence platform, there are some significant levels lying just beneath the six-figure valuation threshold.
This analysis is based on the average cost basis of several Bitcoin investors and the distribution of the BTC supply around the current price. For context, cost-basis analysis basically evaluates the capacity of a price level to act as support or resistance, depending on the volume of crypto last acquired by investors at this level.
As observed in the chart below, the size of the dots directly corresponds with the quantity of BTC purchased within each price bracket and the region’s capacity to act as support or resistance. Source: @SentoraHQ on X
This implies that the larger the dot, the higher the number of coins purchased, and the stronger the support or resistance level; the green dots are support (as they are usually below the current price), while the red dots serve as resistance (as they are above the asset price).
According to data by Sentora, the Bitcoin price seems to have major support within the $95,000 – $99.000 region due to heavy accumulation by investors. This price zone would serve as an on-chain cushion for the Bitcoin price, as investors with their cost bases around the level are likely to defend their positions by acquiring more coins if the price falls toward the $95,000 – $99,000 zone.
Sentora mentioned that if the bulls do defend this support level, the Bitcoin price could be in for an extended rally. On the flip side, the on-chain firm asked investors to expect a surge in volatility if this support level fails to hold. Bitcoin Price At A Glance
As of this writing, the price of BTC sits just above $104,400, reflecting an almost 3% increase in the past 24 hours. Related Reading Traders Turn Bearish on Bitcoin Following High-Profile Political Tensions, Data Shows 21 hours ago The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from iStock, chart from TradingView