Bitcoin Eyes $70K: Key Supply Zone Holds The Market’s Next Move

Bitcoin is inching closer to $70,000, and analysts are monitoring a critical supply zone for the largest cryptocurrency. This price range is crucial because investors accumulated massive Bitcoin here.

Crypto analyst Ali has pinpointed a key supply zone for Bitcoin between $70,180 and $70,600. Over 450,000 addresses collectively scooped up approximately 273,000 BTC within this zone. A supply zone represents an area on the price chart where many buyers previously acquired the asset. It tends to act as a resistance level, creating selling pressure as holders look to break even or book profits.

Source: Ali X’s post

After a steady recovery from the May 1 lows of $56,500, BTC rallied to highs of $71,980 on May 21 before encountering resistance. At the time of writing, BTC was down 1.91% over the past 24 hours, trading at $69,998 as it sustained losses from the previous day.

Source: CoinMarketCap

Bitcoin Poised for Major Move As It Nears Critical Supply Zone

Several scenarios could unfold as Bitcoin edges closer to the highlighted critical supply zone. Bitcoin could continue the bullish momentum if it slices through the $70,600 level with robust trading volume. Such a breakout would likely attract additional buyers, propelling the price and establishing a new support level.

Conversely, if Bitcoin faces significant selling pressure within this range, it could trigger a price rejection and subsequent pullback. This scenario would suggest that many holders are looking to cash in their profits, resulting in temporary resistance.

Another plausible outcome is BTC consolidating below this range for an extended period. This would imply a balanced tussle between buyers and sellers ahead of a major price movement. As Bitcoin approaches its next directional move, price action around the $70,000 mark will be closely scrutinized, given the sheer volume of BTC accumulated in this area.

According to Ali’s analysis based on the MVRV Pricing Bands, if BTC continues trading above $65,125, the next local peak could be around $77,593 before a temporary downswing.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.