Following a price crash to below $80,000 last week, Bitcoin has experienced a notable market recovery over the past 48 hours, rising by over 7.5% to trade above $86,000. Amid this market rebound, crypto market expert Ali Martinez has identified the most critical support level for the premier cryptocurrency at the moment.
Bitcoin Faces ‘Air Gap’ Below $83K – A Breakdown Could Be Brutal
In a recent X post, Martinez shared an intriguing insight on the Bitcoin market. Utilizing the UTXO Realized Price Distribution (URPD) metric, the analyst has pinpointed $83,440 as the most vital Bitcoin support zone.
The URPD is an on-chain metric that illustrates the price levels at which unspent transaction outputs (UTXOs) were last moved, offering a glimpse into how much Bitcoin was transacted at various price points. Each bar on the URPD chart represents a price range, while the height of the bar indicates the volume of BTC transacted at that level.
This metric is particularly useful for identifying potential support and resistance levels, as it indicates where substantial amounts of BTC were bought or sold at specific price thresholds.
According to Martinez’s analysis, data from Glassnode shows that investors acquired 171,693 BTC (0.87% of total supply) at $83,440.72, establishing this price level as a robust support zone. In the event of a retest, Bitcoin bulls are expected to step in and accumulate more BTC at this level.
However, it’s worth noting that there exists a significant air gap between $72,000 and $82,000 with low levels of UTXO recorded in this range. Consequently, a decisive fall below $83,440 could trigger further price declines due to the absence of demand in the immediate lower price zones.
Bitcoin RSI Backs Rebound Quest – More Gains Ahead?
In another analysis post on the BTC market, Martinez has suggested the possibility of further price gains amidst the ongoing recovery. He notes that Bitcoin has historically demonstrated a rebound after its Relative Strength Index (RSI) dipped below 30.
The RSI is a momentum oscillator that gauges the pace of price movements, determining whether an asset is overbought (above 70) or oversold (below 30). Recently, Martinez pointed out that Bitcoin’s RSI has touched 24, indicating it is in the oversold zone, and historical data suggests a rebound to reclaim previous highs may be imminent.
As of now, Bitcoin is trading at $86,383 after a 2.32% increase in the past 24 hours. Despite the recent price correction, BTC remains 21.02% off from its all-time high of $109,114.
