- "Bitcoin" failed to form a sufficient historical support base in the $70,000~$80,000 range, CoinDesk reported.
- Glassnode's on-chain data analysis also showed the Bitcoin supply volume in that range was noticeably low.
- The market indicated that this range could become a new support base during further corrections, and that volatility could increase.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
An analysis found that Bitcoin (BTC) prices have not formed a sufficient historical support base in the $70,000~$80,000 range.
On the 25th (local time), the crypto asset (cryptocurrency) specialist media CoinDesk reported that an analysis of Chicago Mercantile Exchange (CME) Bitcoin futures data over the past five years showed Bitcoin spent a notably shorter period in that price range compared to other ranges.
It is notable because the longer a price remains in a certain range, the more positions accumulate, increasing the likelihood that range will act as a support level in the future.
According to investment data provider Investing.com, Bitcoin spent only 28 trading days in the $70,000–$79,999 range. It spent 49 trading days in the $80,000–$89,999 range.
By contrast, the $30,000–$39,999 and $40,000–$49,999 ranges saw trading for nearly 200 trading days each.
After reaching an all-time high in October, Bitcoin underwent a correction and has been trading in the $80,000~$90,000 range for most of December.
However, this price range is assessed as an area where market participants' accumulation and stagnation were relatively limited compared with the $50,000~$70,000 range, where Bitcoin spent extended periods during 2024.
This analysis is also confirmed by on-chain data. According to Glassnode's UTXO Realized Price Distribution (URPD), the supply of Bitcoin located in the $70,000~$80,000 range is distinctly low. This means that the amount actually bought or moved in that price range was not large.
Market participants say these data suggest Bitcoin could spend some time in the $70,000~$80,000 range during an additional correction and form a new support base there. They also note that volatility can expand in price ranges that have not been historically well-tested.
The analysis used daily opening-price-based data for CME Bitcoin futures, excluding weekend trading. This is a statistic based on the price range where Bitcoin was located when daily trading began.
