Bitcoin High-Level Consolidation Period: 10x Research Strategy Recommendations and Glassnode Cost Reference Guide
As Bitcoin prices remain near historical highs, traders are faced with the difficult choice of whether to enter now or wait for a pullback.
In light of this market situation, cryptocurrency analysis firm 10x Research has provided specific strategic recommendations; while Glassnode's concentrated trading areas also offer investors a reference for transactions.
On July 28, Markus Thielen, founder of cryptocurrency market analysis firm 10x Research, provided his clients with strategic recommendations on potential entry points for Bitcoin (BTC).
Thielen pointed out that if Bitcoin prices pull back to near the May highs (specifically below $112,000, especially close to the level of $111,673), that resistance level would turn into a support level, thus providing investors with a better risk-reward entry opportunity.
He mentioned that the reason he says retesting this breakout point can create more favorable trading conditions is because traders typically seek at least a 1:2 risk-reward ratio. Therefore, adopting a bullish strategy near key support levels is often a reasonable move.
However, Thielen also considered another possibility. He stated that if Bitcoin prices do not experience the expected pullback, but instead effectively break through the downward trend line connecting the July 14 and July 23 highs and hold above the $120,000 mark, it could also be a good opportunity to re-enter. Even so, he reminded traders to set tighter stop losses to manage risks.
Meanwhile, the data released by blockchain data analysis company Glassnode also provides investors with a micro perspective on market activity within specific price ranges.
The chart shows that approximately 73,000 Bitcoins' holding costs are concentrated around $117,000. This indicates that a considerable number of investors have built positions in this area, creating a certain expectation of support for the price.
Analysis also indicates that whenever Bitcoin prices fall back to this area, investors do not panic and exit due to the decline, but instead show signs of sell orders being gradually absorbed.
This holding behavior clearly reflects that the area around $117,000 is not only a historically dense holding area but also demonstrates strong recent market support, as well as investors' emphasis and confidence in this price level.
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