According to data from CoinMarketCap, Bitcoin has had an unimpressive week, with its market price down 4.65% over the last seven days. However, prominent cryptocurrency analyst Ali Martinez has published a price warning indicating that the market leader could be exposed to greater losses if it fails to secure a specific support zone.
Bitcoin URPD Chart Shows Potential Correction – Analyst
IN post X from June 15Martinez stated that Bitcoin needs to rise above $66,254 quickly or it risks a potential decline to around $61,100. Martinez based his theory on a UTXO Realized Price Distribution (URPD) chart generated by data analytics platform Glassnode.
#Bitcoin must return above $66,254 quickly to avoid a potential downward correction to $61,100! pic.twitter.com/WMr7jcAVJU
— Ali (@ali_charts) June 14, 2024
In context, unspent transaction output (UTXO) refers to units of Bitcoin that have not been spent after a transaction. Each UTXO has an realized price, i.e. the market price at the time the UTXO transaction was entered into. In the UTXO realized price distribution chart, the Bitcoin supply is broken down based on UXTO realized prices showing how much BTC was purchased at different levels.
This data can be used to study market sentiment, analyze distributions, as well as support and resistance levels. More importantly, investor behavior can also be studied, as high UTXO concentration indicates the levels at which most investors have purchased Bitcoin, which can translate into a potential resistance or support level.
According to the URPD chart shared by Martinez, 504,619 BTC were purchased at a price of $66,254, indicating forceful support potential for Bitcoin amid its current downtrend. Moreover, the next realized price with the highest number of Bitcoins purchased (191,366) is $61,101, which is another level of support should the leading cryptocurrency fail to regain its price of $66,254.
Bitcoin price overview
At the time of writing, Bitcoin is trading at $66,151, reflecting a price decline of 1.15% in the last day. In both cases, the daily BTC trading volume also decreased by 5.54% and amounted to $25.4 billion. However, Bitcoin remains in green on the monthly chart with a gain of 5.80%, which is a noticeable positive, especially for long-term investors.
According to Coincodex, Nevertheless, the overall sentiment is bearish, with the Fear and Greed Index at 74, indicating current optimism and risk-taking behavior among investors, highlighting the potential for high market volatility.
Featured image from BBC, chart from Tradingview
