Bitcoin’s recovery has been steady over the past 48 hours, rising by over 7.5% to trade above $86,000. Crypto expert Ali Martinez has identified a critical support level for the cryptocurrency at this point – $83,440.
Martinez analyzed the UTXO Realized Price Distribution (URPD) metric, which shows price levels where unspent transaction outputs last moved. The data from Glassnode indicates that investors acquired 171,693 BTC ($83,440.72) as a strong support zone. This suggests that buyers may step in to acquire more BTC at this level if the price retests.
However, there’s a notable air gap between $72,000 and $82,000 with low UTXO recorded in this range. A decisive fall below $83,440 would lead to further decline due to lack of demand in lower price ranges.
Martinez also pointed out that Bitcoin’s Relative Strength Index (RSI) has touched 24 in the oversold zone, suggesting a potential rebound to reclaim previous high prices. This aligns with historical data, which shows Bitcoin recording price rebounds after RSI goes below 30.
Currently, Bitcoin trades at $86,383, with the asset still 21.02% off from its all-time high of $109,114.
Source: https://bitcoinist.com/bitcoins-strongest-support-now-at-83440-willit-hold