According to Rodriguez, the "In/Out Money" model considers the distribution of Bitcoin throughout individual wallets based on the current price.
If the sell-off continues, the next significant level of support sits around $4,200 and $6,600, with over 3.6 million addresses carrying nearly 2 million BTC. On the upside, there is a certain level of resistance between $7,350 and $7,970, since 1.4 million addresses are holding 941,000 BTC. However, the strong resistance level sits between $8,000 and $8,800, with 3 million addresses containing 1.9 million BTC. Even though Bitcoin plunged over 22 percent since last week, the number of Large Transactions with a value of $100,000 or higher has been relatively steady.
Nearly 55 percent of the Bitcoin volume was traded from 10:01 AM to 10:00 PM, which represents the West.
The eastern market has refrained from trading Bitcoin and moved into stablecoins, such as Tether.
The analysis provided by IntoTheBlock's CTO appears to coincide with what can be seen from a technical perspective on the Bitcoin's price charts.
Bitcoin is now hitting the bottom of the channel at $6,900 once again after retracing from reaching the top on Oct. 26.
If this technical formation continues to contain the price of Bitcoin as the current support level is backed by 1 million addresses holding 730,000 BTC, then a rebound to the middle or top of the channel is very likely.
If Bitcoin is indeed bound for an upswing, it will face stiff resistance around the 50 percent Fibonacci retracement level.
The recent price action that Bitcoin experienced brought out extremely pessimistic views about the future of Bitcoin.
The network statistics and technical analysis previously presented estimate strong support around the current levels.
Explaining the big Bitcoin drop: BTC network stats and technical analysis
Udgivet den Nov 22, 2019
by Cryptoslate | Udgivet den Coinage
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