Analysis: Bitcoin Breaks Below $77,700 Support; Next Support Seen at $68,400
Summary
- Bitcoin fell below $77,700, the average purchase price of recent buyers, signaling a break of the previous support level and raising the possibility of further declines.
- On-chain analysis suggests $77,700 could become a new resistance level, with selling pressure building as loss-making investors sell to break even.
- CryptoQuant identified $68,400 as the next level to watch if Bitcoin falls further, and said profitability is also worsening for short-term holders whose average purchase price is $75,832.
Forecast Trend Report by Period
Bitcoin has fallen below $77,700, the average purchase price for recent buyers, raising the risk of further declines. The move suggests a former support level could now turn into resistance.
Cointelegraph reported on November 3 that on-chain analytics firm CryptoQuant estimated the average cost basis for investors who bought Bitcoin over the past one to three months at about $77,700. Bitcoin fell below $77,000 on the day, briefly pushing those investors into loss territory during intraday trading.
CryptoQuant said that when Bitcoin drops below the average purchase price, that level can begin to act as a new resistance zone. Investors nursing losses may sell when the price rebounds in an effort to break even.
CryptoQuant also pointed to $68,400 as the next level to watch if the decline deepens. At that price, investors who bought within the past one to three months would be facing an average loss of about 12%.
Profitability is also deteriorating for short-term holders, who are more likely to cut losses. Investors who have held Bitcoin for 155 days or less had an average purchase price of $75,832.
As of 7:15 p.m., Bitcoin was trading at $76,958, down 1.18% from a day earlier, according to CoinMarketCap.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.