642K Bitcoin Wallet Buys at Support Strengthening Bullish Signal, but Price Breakdown Could Drive BTC to This Level
Crypto analyst Ali recently posted an update on Bitcoin’s price action on Twitter. According to Ali, Bitcoin is currently sitting on stable support at $42,700. This level is quite significant, as data shows approximately 642,000 Bitcoin wallets have purchased roughly 347,000 BTC at this price level.
Should the current bullish trend continue gaining momentum, Ali speculates we may see the Bitcoin price push up toward the next major supply zone at $47,300. Data indicates about 614,000 wallets hold approximately 427,000 BTC at that higher price range.
Support Holds For Now
However, if the $42,700 support level breaks down, Ali cautions that all eyes will turn to the $38,000 mark as the next critical support area traders will watch closely. A decline to that lower price range would mark a retest of the previous 2022 lows for Bitcoin.
Community Response
The crypto community is keeping a close eye on Bitcoin’s price action at these levels amid the ongoing market volatility. As the largest cryptocurrency continues consolidating, many analysts view the stability around $42,700 as an encouraging bullish signal. However, the potential remains for renewed downside if bearish momentum returns.
Ali’s analysis summarizes the current state of limbo Bitcoin finds itself in between bullish and bearish scenarios playing out next. For now, the bulls appear to be defending the $42,700 support zone, but it’s unclear whether this marks the bottom or if another leg down toward $38,000 is still ahead. The coming days and weeks may reveal which path the iconic cryptocurrency takes from here.
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