Bitcoin Price Stuck Below $72K As Consolidation Process: New Study.
Glassnode Hot Data says Bitcoin (BTC) could be headed for another “range-bound” price action if key support levels are not recovered.
Main Receptors:
Bitcoin is stuck between key cost-base levels, predicting a 2022-style consolidation unless key support levels are returned.
Bitcoin price needs to break the resistance at $72,000 to exit the consolidation.
Bitcoin has faced challenges of oversupply.
In the February 11 issue of its regular newsletter The Week On-chain, onchain data provider Glassnode confirmed supply zones that limit ongoing monitoring and “create over-resilience during rallies.”
The BTC/USD pair is currently in a new range defined by the real market average at $79,200 and close to the structural area seen in the first half of 2022 at $55,000.
According to Glassnode, Bitcoin price is expected to continue to fluctuate in this corridor until new buyers emerge and gradually accumulate supply.
As the chart below shows, the price spent the period between April 2022 and June 2022 held between the real market average and the actual price before entering an extended bear market and falling to $15,000 in November 2022.
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A break out of this range would require tremendous encouragement, “either a decisive recovery to the real market average around $79.2K, indicating renewed structural strength, or a systemic displacement similar to LUNA or FTX forcing prices below $55K realized,” Glassnode said.
“In the absence of such extremes, a range-bound long-term absorption level remains the most likely path for the medium-term market.”
Glassnode's UTXO Realized Price Distribution (URPD), a metric that shows what prices the current set of Bitcoin UTXOs have generated, showed that wide and dense supply zones above $82,000 are also slowly developing into long-term holdings.
“Significant sets between $82k and $97k and $100k–$117k are structurally heavy,” said the onchain data analytics platform.
“These zones could act as hidden sell-side overlaps, especially if longer durations in the water or renewed bearish volatility lead to more capital.
In a recent X post, Alfratal founder and CEO João Wedson said Bitcoin “whales are closing and opening shorts from a retail perspective.”
“In the next 30 days, Bitcoin is likely to enter a consolidation phase, phase and build structure.”
The price of Bitcoin is stuck between two key levels
Bitcoin's 20% recovery from a 15-month low below $60,000 was rejected against $72,000.
It is now consolidating below recently established support at $65,000 and resistance at $68,000, with analyst Daan CryptoTrades saying bulls “need to break above to re-attack $72,000.”
CoinGlass' Liquidation Hetmap shows Bitcoin in a classic liquidation sandwich with heavy ask orders between $69,000 and $72,000 and dense bid positions below $66,000, as shown in the diagram below. This shows the relative rigidity of the current market structure.
According to Cointelegraph, Bitcoin should take out resistance at $72,000. With the 20-day EMA at $76,000 and the 50-day SMA above $85,000, the price of BTC may go down in the near future.
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