BTC has established a support and resistance range at $64,750 and $70,180.
Crypto market analysts have identified new support and resistance levels for bitcoin (BTC) following the digital asset’s fall to the $66,000 price range.
According to a tweet by technical and on-chain analyst Ali, BTC has established a support and resistance range at $64,750 and $70,180.
Bitcoin’s New Support and Resistance Levels
Support levels refer to price marks that an asset does not fall below for a period of time, while resistance is the point where an asset’s upward trajectory is disrupted. A support level is usually created by buyers entering the market as an asset slumps to a lower price, while resistance is triggered by high selling pressure.
Ali explained that bitcoin’s new support range is between $64,750 and $66,700. At this level, 382,000 Bitcoin addresses hold more than 275,000 BTC. The average price of this support level is $65,390.
The technical analyst stressed the importance of monitoring this new support level because losing it could shift the market’s focus to the next zone with significant demand between $60,760 and $62,790. This level is safeguarded by 797,500 addresses holding more than 298,000 BTC.
As for Bitcoin’s resistance level, the zone sits between $70,180 and $71,340, a barrier fortified by 533,300 addresses collectively holding approximately 433,000 BTC.
BTC Falls 8% Within Hours
Ali’s analysis comes as BTC loses a substantial portion of the gains it recorded in the past few days. After surpassing $70,000 for the first time last weekend, bitcoin broke through $73,000 earlier this week, almost touching $74,000 on Thursday.
However, the leading digital asset came crashing on Friday, dragging several altcoins with it. In the last 24 hours, BTC has lost more than 8% of its value, triggering approximately $700 million in liquidations from more than 190,000 traders. The cryptocurrency fell from $73,400 to nearly $66,000 within a few hours.
Analysts have warned that the asset could decline further to around $64,000, but that remains to be seen.
Meanwhile, several altcoins, including ether (ETH), Binance Coin (BNB), and DogeCoin (DOGE), have also lost significant portions of their value.