In recent weeks, the cryptocurrency market has witnessed a volatile journey of Bitcoin (BTC), as the largest cryptocurrency continuously set new all-time high price levels. Notably, BTC surpassed the 124,100 USD mark, marking a new all-time high.
However, after an impressive acceleration phase, Bitcoin has faced strong selling pressure. Throughout the past weekend, BTC prices mostly fluctuated around the 118,000 USD area, indicating a tug-of-war between buyers and sellers.
Two Important Support Zones: 117,500 USD and 114,500 USD
According to the latest analysis from Ali Martinez, a well-known trader on the X platform (formerly Twitter), data from Glassnode has indicated two support levels that could play a key role in the coming days:
117,500 USD
114,500 USD
The basis for this assessment comes from the Cost-Basis Distribution (CBD) index, which shows the average price at which a large amount of BTC has been purchased, reflecting the 'clusters' of costs that many investors are holding.
According to data, about 72,900 BTC were purchased around the 117,500 USD level, and over 56,201 BTC were accumulated at the 114,500 USD region. This indicates that when prices return to these levels, investors tend to protect their positions by buying more BTC, thereby helping to form a solid support zone.
Risk of Losing the 114,500 USD Level
Despite the support from incoming capital, Martinez also warns that if Bitcoin's price breaks through the 114,500 USD level, the market could face a deeper correction. The reason is that below this price area, there are not many strong support layers formed from cost basis data. This means that prices could fall faster if selling pressure continues to dominate.
Current Situation of Bitcoin
As of the time of writing, Bitcoin is trading around 117,600 USD, almost flat in the past 24 hours. In the past week, BTC only increased slightly by about 0.7%, clearly reflecting the hesitation and short-term lack of direction in the market.
Conclusion
Bitcoin is facing an important phase, where the support areas 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 on to test higher levels again. Conversely, losing the 114,500 USD level could open up a strong correction, pulling BTC prices back to untested lower ranges. In this context, investors need to pay special attention to price behavior around these two key support zones to make decisions aligned with risk management strategies.
