New data from crypto analytics platform IntoTheBlock indicates that Bitcoin (BTC) is facing further downside pressure.
According to the market intelligence firm, the crypto king’s recent drop below $60,000 – a historically critical demand zone – could cause it to see further price cuts.
“Bitcoin has breached its $60,000 support level, a critical demand zone. This move leaves over 16% of BTC holders in a loss position. Historically, demand just below $60,000 has been weak, suggesting further downward pressure. The next significant demand zone lies between $40,000 and $50,000.”
However, IntoTheBlock notes that BTC whales have been accumulating the top crypto asset by market cap around the $60,000 level over the last 30 days, suggesting buy pressure at that price.
“The chart below shows the netflow of wallets holding more than 0.1% of the Bitcoin supply. This data shows that over the past 30 days, large Bitcoin whales had a positive netflow of more than 55,000 BTC, signaling accumulation.
The peak in this accumulation was strongest when Bitcoin recently dipped to $60,000, suggesting substantial buying pressure from these large holders at this price level.”
The analytics platform concludes by noting that activity over BTC has been the highest it’s been since mid-April.
“Bitcoin activity is on the rise! The number of active BTC addresses crossed 900,000 yesterday, hitting levels not seen since mid-April. This peak is part of a bigger trend, as activity has been slowly increasing since early June.”
Bitcoin is trading for $57,432 at time of writing, a 4.6% decrease during the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Philipp Tur/Suri Sharma