Popular cryptocurrency analyst Ali Martinex has said that Bitcoin has its “most important support level” between $26,360 and $27,160. The range is notable, as it represents a significant volume for the cryptocurrency.
As per Martinez’s observations, over 2.36 million unique Bitcoin addresses bought more than 1 million Bitcoin within this price range. This data implies that a substantial number of Bitcoin holders purchased their Bitcoin within this price range, and therefore might be incentivized to prevent the price from falling below it.
If the price does drop to this level, these holders might buy more Bitcoin to ‘support’ the price, or resist selling their Bitcoin, both of which could help to keep the price above this range.
However, while the existence of this support level is a fact based on historical transactions, it’s important to note that it doesn’t guarantee future price behavior. Bitcoin’s price is determined by a myriad of factors, including global economic conditions, regulatory news, technological advancements, and the overall sentiment in the cryptocurrency market.
A support level is a tool used by traders and analysts in the realm of technical analysis. It’s a price level where a stock or, in this case, a cryptocurrency is expected to stop falling, as there is more demand (buying interest) at that level than supply (selling interest).
The price of Bitcoin notably dropped below the $26,000 mark after the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and their founder, Changpeng Zhao.
The charges include operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, and the unregistered offer and sale of securities.
Binance responded to the SEC revealing it had engaged in extensive good-faith discussions to reach a negotiated settlement to resolve the SEC’s investigations. However, it says that the SEC abandoned this process and acted unilaterally, a decision that Binance finds disheartening.
Binance firmly stated that any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. It also mentions that all user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and the company will vigorously defend against any allegations to the contrary.
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