A number of indicators are observed when analyzing the potential driving processes and assessing the level of support given in the $30,000-$40,000 price range using the UTXO Realized Price Distribution (URPD) metric. In particular, URPD indicates where for every coin in the Bitcoin UXTO set, the price is analyzed from when it last moved, illustrating the distribution similar to a volume profile. In its weekly report on February 8, the on-chain analytics platform Glassnode identified “a top-heavy market,” in which lots and lots of coins were last moved at significantly higher prices, indicating either holders are waiting for exit liquidity in a bounce to exit their positions, or there are more ‘hodlers‘ in the market. Glassnode also said that the $35,000 level is a critical one to pay attention to: The platform added:
Bitcoin Monthly Returns Performance
Furthermore, the Monthly Returns Performance, which looks at how Bitcoin’s price has performed over the last 30 days, generally anticipates some individuals will spend their coins when the price performance is strong, and the opposite when the price performance is poor. The blue line on the chart below indicates -30% over the course of a month it was hit in March 2020, at the bottom of the bear market in 2018 and the first major sell-offs after the blow-off top in 2017 and again in the June and July 2021 sell-off. However, Glassnode points out: The analysis adds: Overall, Bitcoin has successfully passed the first phase of the short squeeze, and the market has gone higher as a result. Several metrics indicate that strong support was present around $35,000, and traders will now be hoping for that on-chain momentum to drive the price higher. Watch the full video of the on-chain analysis: Is a Bitcoin Bottom in? Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
