Bitcoin’s price has been under significant pressure, but Glassnode, a prominent blockchain analytics firm, suggests that there are four major support levels that Bitcoin traders should not overlook.
According to Glassnode, the Bitcoin spot price is slightly above its 111-day moving average (DMA) and its 200-week moving average (WMA), providing a support area for the cryptocurrency. This places the first two levels at around $26.2K. These lines act as price floors, where buying pressure might be strong enough to halt or even reverse the recent downtrend.
However, in case of a volatile drop below these levels, the analysts point out a confluence of the 365 DMA and the 200 DMA as another critical support zone. This range, between $22.3K and $22.6K, could be a crucial battleground for bulls and bears, should the price drop to these levels. As such, these are the four significant support levels identified by Glassnode: the 111 DMA is at $26,200, the 200 WMA is at $26,200, the 365 DMA is at $22,300 and the 200 DMA is at $22,600.
At the moment, Bitcoin’s price is fluctuating between the 50- and 200-day exponential moving averages (EMAs). The trading volume has been on a downward trend, which might suggest a decrease in trader activity or interest. Concurrently, the Relative Strength Index (RSI) is at a low. This could suggest that the bearish momentum is slowly waning, potentially paving the way for a bullish rally.
These support levels provide a framework for understanding potential price movements, and traders and investors should incorporate them into a broader analysis and risk management strategy, instead of relying on them exclusively.