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Bitcoin increase its resolution below the psychological level of $100,000 in the last 24 hours. At the time of writing, Bitcoin is struggling to hold above the $94,000 mark after a brief recovery from its recent crash to $91,000.
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As it stands, the Bitcoin price outlook has taken a cautious turn, with crypto analyst Ali Martinez highlighting a $12,000 gap between $87,000 and $75,000. Analysisbased on Bitcoin UTXO Realized Price Distribution (URPD) ATH-Partitioned, reveals the lack of significant support in this range and raises concerns about an immediate crash to $75,000.
$12,000 Void Shows Lack of Support Between $87,000 and $75,000
Data from Bitcoin’s UTXO Realized Price Distribution (URPD) ATH-Partitioned metric shows that the range between $87,000 and $75,000 has no discernible price action. UTXO is a quiet but important technical indicator that provides insights into the distribution of Bitcoin at different price levels and focuses on UTXOs (Unspent Outputs).
Therefore, analyzing UTXOs helps to identify price levels where Bitcoin owners are currently sitting on gains or losses.
As noted by Ali Martinez, the range between $87,000 and $75,000 opens up a potentially negative $12,000 gap for Bitcoin. This is because this range represents “little or no support,” meaning that there is not enough historical buying activity to stabilize the price of Bitcoin if it enters this area. Therefore, this space is expanding risk of sharp correction should Bitcoin fall below the upper limit.
$12,000 Money Market Effects
As it stands, the empty threat of $12,000 can only work if Bitcoin can break below $87,000. Although Bitcoin has held strongly above $90,000 even during the correction since November, the recent drop to $91,000 opens the possibility of a drop below $90,000. This concern has been amplified with the Crypto Fear and Greed Index shifting to a neutral position, consistent with the entry bearish sentiment across social media.
If Bitcoin were to break below $90,000, this would open the way for a further decline to $87,000. This, in turn, can lead to a quick drop to $75,000. This situation will undoubtedly test the bullish sentiment among investors and Bitcoin’s ability to support. predictions of a long-term bullish trajectory.
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On the other hand, you could easily argue that further consolidation opens up the opportunity to accumulate more BTC. In accordance with analyst at CryptoQuant, the short-term SOPR index is currently below 1, which means that many short-term investors are selling Bitcoin at a loss. However, history shows this situation usually precedes a major upward trend, which makes it good time to collect.
At the time of writing, Bitcoin is trading at $94,350.
Featured image from Getty Images, chart from TradingView