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The $ 47,000 level has been one of the strongest bitcoin price supports


New data shows that we saw one of the strongest bitcoin price supports in the $ 47,000 range. On the other hand, about 6.5% of the bitcoin supply in circulation was transferred within the chain. Experts have described the issue as “one of the largest levels of bitcoin accumulation in the Blockchain.”

to the Quoted From the Coin Telegraph, a report from Glassenood shows that at $ 47,000, significant intra-chain support has formed in the Bitcoin blockchain. In other words, after the $ 11,000 level in late 2020 (late fall ’99), we now see the largest support within the $ 47,000 chain identified.

According to the company, on March 8 (March 18), during the last week, while about 1.2 million bitcoins were transferred internally, the price of this digital currency hit the support of $ 45,000 and then entered the trading range of 45,500. It was up to $ 48,900.

Rafael Schultze-Kraft, Chief Technology Officer at GlassNood, noted that with the formation of the support level, about 6.5% of the bitcoin supply was transferred to the network. He first tweeted on March 5:

Very strong intra-chain support has formed at the level of $ 47,000 and about 500,000 bitcoins have been transferred in this range. In my opinion, it is important to maintain this level of support, otherwise, before the next uptrend continues, we will soon see the price reach the $ 40,000 range.

On March 7, Schultze Craft wrote in a previous tweet:

This level of support is well established and more powerful. We now have a wall of 1.2 million bitcoins transferred between $ 46,600 and $ 48,600 across the network; This is equal to 6.5% of the supply in circulation! I do not know that the price will go below this range in the near future. I entered the long ($ 50) position below the $ 50,000 level and still maintain that position.

Bitcoin accounts balance chart

Although, according to Glassonood, large Bitcoin price movements could signal investors’ stockpiling of the digital currency, the company acknowledged that the increase in in-chain activity could also be related to vendors competing to move their coins to exchanges. The company’s report states:

An important question to ask is whether this volume of intra-chain transactions is related to the accumulation of coins, or whether, instead, we are faced with only the rush of sellers to exit the transactions.

However, the report’s authors note that the number of bitcoins held in exchanges has continued to decline recently; Over the past week, 32,500 bitcoins have been withdrawn from centralized exchanges.

Realized price distribution of unspent bitcoin transaction outputs (UTXO).  Source Glassenode
Realized price distribution of unspent bitcoin transaction outputs (UTXO). Source Glassenode

According to GlasNow, the volume of intra-chain transactions has increased, and this year, an average of more than $ 10 billion of bitcoins have been traded daily. The data also show that the daily bitcoin transfer in 2021 has already exceeded five times more than $ 16 billion.

A Twitter user named “jtf.capital” said:

The value of bitcoin transfers is still barely 0.2% of the daily Forex trading volume.

He stressed that there was still “enough room for bitcoin to grow”.

It is worth noting that at the time of writing, Bitcoin is trading at a price of about $ 54,000.

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