While everyone is focused on the upcoming ETF decision expected in the coming days for Bitcoin, analysts’ predictions continue to emerge one after another. Ali Martinez pointed out two significant demand zones that could be important for Bitcoin. Here are the supply walls highlighted by the analyst and what kind of scenario could unfold for BTC.
The Future of Bitcoin
According to a post shared by analyst Ali Martinez on platform X, Bitcoin has recently been trading between two major supply walls. The term “supply wall” refers to the amount of Bitcoin purchased by addresses within any given price range.
Below, the analyst’s comments and the accompanying chart show the current trading range of BTC in the spot market, which reveals what the supply walls look like.
The size of the dots in the chart above indicates how much BTC investors have purchased in the mentioned area. The price ranges of $41,200 to $42,400 and $42,400 to $43,700 are highlighted as regions with significantly high demand in terms of supply.
To interpret more clearly, in the first range, 723,490 BTC were purchased by 1.92 million addresses, while in the second range, 706,400 BTC were bought by 1.67 million addresses.
For any investor, the cost of prices related to purchases marks an important level. This is because when the price of BTC returns to this level, the profit-loss situation can potentially change. Consequently, it would be more normal to expect some reaction from investors when such a retest occurs.
Accordingly, it can be said that the reactions of just a few investors may not significantly impact the market. However, if a large number of addresses share cost bases within a narrow range, a retest can bring about significant effects.
Therefore, the supply walls we just mentioned could bring important retest points for Bitcoin. Such effects also shed light on investor psychology and operating principles. Before a retest, investors with profitable investments may want to buy more, trusting the same price range.
On the other hand, investors at a loss may want to sell when the price reaches the break-even point, as the cryptocurrency’s price could fall again.
Current Situation in Bitcoin
The recent consolidation of Bitcoin reflects trading between two major supply walls. Ali Martinez comments on the matter:
Consistent closures beyond these limits will help measure BTC’s trend.
The analyst’s shared chart indicates that the next major resistance potentially lies between $46,300 and $47,600, while the region between $38,600 and $39,900 is the next major support below.
The analyst also added:
A break above the resistance could push BTC towards $47,600, while a fall below support could lead to a correction down to $38,600.
In addition, Bitcoin has seen a sharp rise to the $43,500 level at the time of writing.
