Bitcoin: The Journey to Establish New Peaks and Important Support Areas

In recent weeks, the cryptocurrency market has witnessed a volatile journey of Bitcoin (BTC), as the largest cryptocurrency in the world continuously set new record price levels. Notably, BTC surpassed the milestone of 124,100 USD, marking a new all-time high. However, after an impressive acceleration phase, Bitcoin has faced strong selling pressure. Throughout the past weekend, the price of BTC mainly fluctuated around the 118,000 USD area, indicating a tug-of-war between the buyers and sellers. Two Important Support Areas: 117,500 USD and 114,500 USD According to the latest analysis from Ali Martinez, a well-known trader on the platform X (formerly Twitter), data from Glassnode has indicated two support levels that could play a crucial role in the coming days: 117.500 USD114.500 USD The basis for this assertion comes from the Cost-Basis Distribution (CBD) index, or the distribution of the purchase price basis of investors. This index indicates the average price at which a large amount of BTC has been purchased, thereby reflecting the "clusters" of costs that many investors are holding. According to the data, approximately 72,900 BTC were purchased around the level of 117,500 USD, and more than 56,201 BTC were accumulated in the region of 114,500 USD. This indicates that when the price returns to these levels, investors tend to protect their positions by buying more BTC, thereby helping to form a solid support zone. Risk If Losing the Mark of 114,500 USD Despite the support from the influx of buying capital, Martinez also warns that if the Bitcoin price breaks below the 114,500 USD mark, the market could face a deeper correction. The reason is that below this price range, there are not many strong support levels formed from the cost basis data. This means that the price could drop faster if the selling pressure continues to dominate.

Current Situation of Bitcoin As of the time of this article, the price of Bitcoin is trading around 117,600 USD, almost flat over the past 24 hours. In the past week, BTC has only increased slightly by about 0.7%, clearly reflecting the hesitation and lack of short-term direction of the market. Conclusion Bitcoin is at a crucial stage, where the support levels of 117,500 USD and 114,500 USD could determine the short-term trend. If maintained, the market has a chance to recover and move towards retesting higher levels. Conversely, losing 114,500 USD could open the door to a strong correction, pulling BTC prices down to lower, untested regions. In this context, investors need to pay special attention to price behavior around these two key support areas to make decisions aligned with risk management strategies.