Bitcoin (BTC) price has fallen sharply over the last week
Bitcoin price remained relevant above $30,000 this week. Despite the accident, it is now closer to $35,000 than it was two days ago. The asset suffered an almost 20% drop in price last week, however, this has not deterred traders from buying, and accumulation continues. Furthermore, even at the $32,000 level, 68% of hodlers are profitable, although the concentration by large hodlers is currently less than 15% based on INTOTHEBLOCK data.
At the same time, while Bitcoin continues to trade below the $35,000 level, online data showed that the most significant support zone for the BTC was between $31700 and $33500. This is the same zone as in the which about 570000 addresses bought approximately 500 bitcoins, making it an important psychological level for the price of BTC. If the asset loses support at that level, the price is likely to hit the next demand barrier that is currently below the $25,000 level at $23400.
IOMAP Bitcoin | Source: Twitter.
It is worth noting that if the demand barrier between $31700 and $33500 holds, Bitcoin could bounce back to $37,000. Bitcoin network last week, the narrative is higher.
$118.58 billion flew into the Bitcoin network, supporting the recovery and price narrative reaching over $40,000, rather than falling below $25,000. Furthermore, the IOMAP shown above suggested that $37,000 represents a massive resistance zone, with 1.3 million purchased addresses 643,000 BTCs around this price level. These addresses represent a large percentage of Bitcoin traders and hodlers and this price level is critical for sentiment and social volume.
Bitcoin’s social volume and dominance has dropped, and is more likely to bounce back above $35,000 than to fall below $25,000.
Gbtc AUM | Source: Skew.
Based on the chart above, Grayscale’s AUM increased after hitting a decline in the first week of June. AUM is now worth $651K based on Skew’s data. Interestingly, most institutions that have reduced their BTC holdings recently have already bought again in the fall. This is positive for the price of Bitcoin and makes it less likely that the price will drop below $25,000 on the current dip.