BitcoinThe struggle (CRYPTO: BTC) to break through $ 60,000 has proven that price is a crucial level of resistance in the current bull run.
What happened: However, according to research by Chainalysis, the cryptocurrency has also found strong support at $ 50,000 and an even stronger floor price at $ 40,000. According to the company’s chief economist Philip Gradwell, the latest data suggests “strong support for high prices”.
Gradwell notes that 3.1 million bitcoins were purchased and held at a price in excess of $ 40,000, while 1.6 million bitcoins were purchased and held at a price in excess of $ 50,000.
According to data from Chainalysis, buyers spent $ 88 billion to get the 1.6 million bitcoin at an average price of over $ 50,000.
“Analysis of cost over time shows how radically the market has changed in the past few months, becoming one that is likely to be in high demand from existing buyers to support high price levels,” Gradwell said.
Why it matters: For market proponents with bullish prospects, the digital asset, which is making higher highs and higher lows each week, is a bullish indicator.
A Crypto Quant on-chain analyst Ki Young Ju shared a chart showing Bitcoin miners accumulating despite the network’s hash rate, which hit an all-time high.
The $ BTC hash rate hit an all-time high and miners seem to be amassing bitcoins. https://t.co/X0Uf3Sxa3S https://t.co/QV4UpvoYuN pic.twitter.com/pHtTphPBLg
– Ki Young Ju Ki Young (@ki_young_ju) April 6, 2021
“The fundamentals of the network are getting better and better, and those who make the network strong aren’t paying out bitcoins to buy new mining rigs. They buy mining equipment with cash, not bitcoin, ”he said.
Join us on SPAC’s attack with Matt Higgins & Gary Vee
© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.