Bitcoin’s Significant Support Stands at $42.2K, Illiquid Supply Soars for 214 Days

Based on Bitcoin’s transaction history, outstanding support stands at around $42.2K as many addresses bought coins at this level.

Market analyst Ali Martinez explained:

“Bitcoin transaction history shows that the most significant support level sits at $42,260, where 1.33 million addresses bought over 611,000 BTC. On the other hand, there is a stiff supply barrier between $45,640 and $47,000, where 2 million addresses hold 1.39 million BTC.”

Bitcoin’s upward momentum has diminished, given that it was down by 4.38% in the last 24 hours, hitting $43,495 during intraday trading, according to CoinMarketCap

The leading cryptocurrency needs to hold the $42,260 level to avoid a further drop.

Illiquid supply goes through the roof

Despite the retracement experienced in the BTC market, illiquid supply has been going up for the last 214 days. Glassnode co-founders under the pseudonym Negentropic stated:

“Bitcoin’s illiquid supply has been increasing for the past 214 days. Surpassing the 2020 accumulation. BTC selling pressure is fading.”


Source: Glassnode

This analysis suggests that selling pressure in the Bitcoin market is diminishing based on the surge of immobile BTC supply.

Moreover, according to crypto analyst Allen Au, long-term holders have not been relinquishing their investments, so the present correction should not be heavy.

He noted:

“Unlike the recent highs, long-term hodlers aren’t selling their BTC as there’s no spike in their Spent Output Age Bands (SOAB) so the correction shouldn’t be deep. As the next FOMC meeting is 1 mounth away, markets should stabilize after sell-off. BTC should hold its 50 EMA ($43K) or else at $42K & bounce.”


Source: Glassnode

Therefore, the analyst expects the Bitcoin market to stabilize by holding the $43K or $42K level, given that the Federal Open Market Committee (FOMC) will occur in a month.

As a Federal Reserve (Fed) branch, the FOMC determines the monetary policy’s direction regarding open market operations. 

Meanwhile, Bitcoin miners have consistently accumulated more coins for nearly a year, indicating a behavioural change. 

Image source: Shutterstock


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Bitcoin’s Outflow from Exchanges still Heavy Despite Looming Correction, says Crypto Trader

After hitting lows of $44,935 in the last 24 hours, Bitcoin (BTC) is up by 5% to trade at $47,301 at the time of writing, according to CoinMarketCap. Bitcoin has been experiencing a pullback ever since it hit a record-high of $58,300 in the past week.

Bitcoin’s Outflow from Exchanges is still Heavy Despite Looming Correction, says Crypto Trader

Veteran market and crypto trader Michael van de Poppe has noted that despite the current price correction, Bitcoin outflows from exchanges are still sizable. He acknowledged:

“Even in this correction, the outflow of Bitcoin from exchanges is still heavy. This means that people are buying their Bitcoin to hold in cold storage as an investment vehicle, and those are not selling. We’re still early. In a healthy correction.”



The crypto trader trusts that the present consolidation represents a healthy correction, as evidenced by outflows from exchanges, which shows a strong holding culture. 


This information correlates with insights provided by on-chain analyst Rafael Schultze-Kraft that Bitcoin’s illiquid supply is continuously growing. He explained

“The amount of illiquid Bitcoin supply in the network has grown more than the circulating supply since 2017.”

Illiquid BTC supply signifies a holding culture as more participants are storing Bitcoin for speculative or future purposes, which indicates a bullish behavior.


Bitcoin was up by 39% in February


Despite the ups and downs Bitcoin experienced in February, the leading cryptocurrency was able to close the month on a high. It recorded a 39% surge, as acknowledged by crypto analyst Chris Russi. He noted:

“Bitcoin still managed to close the month of Feb. up 39%. This comes even after ~25% drawdown from the $58K high it posted on Feb 21. All but 3 out of the last 10 Marches have produced negative returns, so most will be focused on seeing whether or not BTC’s seasonality repeats.”


Institutional investors continue pumping in sizable funds into Bitcoin, as evidenced by CoinBeast. The data provider revealed:

“The companies currently holding the most Bitcoin on their balance sheet ranked by holdings. 1.Grayscale- 649,130 BTC  2.MicroStrategy– 90,531 BTC  3.Tesla- 48,000 BTC  4.GalaxyDigital- 16,402 BTC  5.Square- 8,027 BTC.”

Time will tell how BTC closes in March based on Russi’s sentiments that only 3 of 10 Marches have closed in the negative. 

Image source: Shutterstock


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Bitcoin (BTC) $ 26,573.12 0.40%
Ethereum (ETH) $ 1,591.95 0.54%
Litecoin (LTC) $ 64.79 0.06%
Bitcoin Cash (BCH) $ 208.15 0.27%