Bitcoin’s recent dip triggered heavy trading activity, with nearly 600,000 BTC changing hands in the $60,000–$70,000 range, according to blockchain data tracked by Glassnode.
In other words, traders went bargain hunting, snapping up nearly 600,000 BTC ($42.48 billion) in this price band during the correction. Of these, more than 200,000 BTC were accumulated in the past two weeks alone.
Note that at the start of the year, roughly 997,000 BTC had last moved within the $60,000–$70,000 range. Since bitcoin’s recent drop below $70,000, that number has jumped to 1.558 million BTC.
Taken together, it means that nearly 8% of the circulating supply is owned by people who bought their bitcoin in this range, creating a dense cluster of ownership. As such, the $60,000–$70,000 range could act as an important support level going forward.
At press time, bitcoin changed hands above $70,000, trading at levels, which have previously seen thin trading activity. CoinDesk Research has previously highlighted the “air gap” between $70,000 and $80,000, a range where relatively little supply changed hands.
Still, the market is at a point where things could spice up, because analysis by Checkonchain shows that around 40% of bitcoin holders have paid more than $70,000 for their coins.
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Author: James Van Straten
