On-chain analytics provider, Glassnode, has revealed that there is solid support at the $47,000 level for Bitcoin. It came to this conclusion in its latest ‘Week on Chain’ report using analysis from chart guru Willy Woo and data scientist Rafael Schultze-Kraft (@n3ocortex).
It added that Woo noted a significant volume of BTC was transacted on-chain around $45,000, forming an on-chain support level late last week.
Schultze-Kraft highlighted that this support level has actually strengthened to rest above $46.6k, with 1.2 million BTC, or 6.5% of circulating supply, transacting in this zone.
#Bitcoin has held composure around $50k this week despite volatility in traditional markets.
This Week On-chain, we deep dive into how three key network participants managed this correction.
– Long Term Holders
– Short Term Holders
— glassnode (@glassnode) March 8, 2021
Is BTC Accumulation Increasing?
Glassnode pointed out that the patterns suggest an increase in accumulation interest at these levels:
“When a large volume of coins move on-chain and an on-chain support level holds, it suggests that there is significant accumulation interest and buyers see it as a ‘value’ entry point.”
However, it also noted that should price fall below this support level, it would become a level where overhead supply may form equally strong resistance.
Using the UTXO Realized Price Distribution metric, which shows which prices the current set of Bitcoin unspent transaction outputs were created, the on-chain support level at $47k is the largest since prices were $11k, it added.
“This range now represents one of the …
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