Bitcoin sees $30,000 as the next key level, based on on-chain data showing underwater holders between current prices and $30,000. These underwater clusters can increase volatility in both directions – sell when it falls, but up when bull momentum builds. Data from IntoTheBlock shows that $30,000 is the most critical correction level to watch for Bitcoin’s next big move. Bitcoin is back in the spotlight after a grayscale legal victory this week. And now $30,000 is the next big milestone according to IntoTheBlock’s chain analysis.
About 6.2 million Bitcoin addresses acquired coins between the current price and $30,000. This accounts for approximately 2.6 million BTC of “underwater” holders who are still losing their positions.
These clusters of owners waiting for a profit are significant levels that can move fuel prices in either direction.
Bitcoin represents a two-way breakthrough potential
On the other hand, bearish sentiment can cause underwater owners to rush to dump coins and cover losses, adding momentum to the downside. On the other hand, strong enough catalysts could see Bitcoin explode through these underwater walls on its way to higher peaks without a problem. ETF approval is one potential booster.
On-chain data indicates that Bitcoin is currently in a precarious balance. While the bulls are still gathering momentum, the next big test will come as they attempt to break above the $30,000 resistance area.
Bitcoin has moved steadily higher since the June lows, but still remains nearly 50 below its all-time high. Clusters of losers can slow down and stall a parabolic rise.
However, the gray-shaded ETF decision seems to have improved sentiment about Bitcoin’s prospects. If the upward momentum increases, BTC can quickly leave the “bubbles” of underwater owners when it reaches $30,000 and above.
Time will tell if bearish or bullish forces influence Bitcoin’s next move. But chain reviews highlight the $30,000 level as a critical battleground to watch. A major break above could be a sign that a new bull market is underway.