- Bitcoin’s support zone between $65,000 and $71,000 is key for LTHs, signaling strong demand
- An active realized price of $71,000 and true market mean at $65,000 reinforce Bitcoin’s support zone
Bitcoin’s [BTC] price action has been nothing short of a rollercoaster, but the current support zone between $65,000 and $71,000 could be the market’s safety net.
With the active realized price hovering around $71,000 and the true market mean price reinforcing support at $65,000, long-term investors may see any dip as a golden opportunity.
Why is the support zone significant?
Bitcoin’s support zone is key, driven by active investor behavior. The active realized price at $71K shows where moved coins cluster, while the true market mean at $65K sets the core support.
This range helps anticipate investor actions, as consistent demand here can stabilize prices, even in volatile market conditions.
Bitcoin: What does the data say?
The data demonstrates how Bitcoin’s market dynamics align with the identified support zone. The realized price, active realized price, and true market mean price define support between $65,000 and $71,000.
This suggests that LTHs are unfazed by short-term volatility. The narrowing gap between these metrics shows that recent price moves reflect genuine investor engagement, not speculation.
Source: CryptoQuant
Such alignment between fundamental support metrics is uncommon, highlighting that the market’s perception of value is consolidating in this zone.
Macro market sentiments and accumulation trends
Bitcoin’s price range between $65,000 and $71,000 is seen as a key accumulation zone for LTHs, while STHs might view it as an opportunity to sell at a perceived top.
If Bitcoin dips into this range, STHs could exit positions, taking profits, while LTHs may continue accumulating due to the zone’s strategic importance.
This could lead to volatility, but strong demand may help stabilize prices.
If Bitcoin falls into this range, buying activity could intensify. Long-term holders may accumulate, seeing value at lower prices. Short-term holders might exit, fearing further drops.
However, with consistent demand, Bitcoin could stabilize and potentially rebound. The support zone might act as a cushion against sharp declines.