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Bitcoin, the leading cryptocurrency, surged above $81,000 during the week, but then dropped to around $78,000 following Federal Reserve Chairman Kevin Warsh’s hawkish speech at Jackson Hole. However, it subsequently recovered back above $79,000.
While the market wonders whether $BTC will continue its upward trend, the analysis company Alphractal has shared its updated assessment of Bitcoin.
At this point, Alphractal used its self-developed Structured Market Bands metric, calculated using on-chain data, to identify critical levels for $BTC.
Developed by Alphractal, this metric calculates support and resistance zones directly from UTXO movements on the Bitcoin network and from investors’ cost basis.
Structural Levels Defined for Bitcoin!
With Bitcoin trading above approximately $79,000, structural market bands are currently at these levels, according to Alphractal:
“Structural Resistance Upper Band: $100.570
Structural Resistance Lower Band: $75.024
Structural Support Upper Band: $63.284
Structural Support Lower Band: $57.228”
According to the analysis firm, $BTC’s breakout above the lower structural resistance band of $75,024 indicates that the price is now moving within the next upper supply zone. At this point, the current price is approximately 27.7% below the structural resistance ceiling of $100,570. This structure suggests that the further Bitcoin’s price advances within the resistance zone, the greater the potential for increased selling pressure.
The analysis firm noted another significant development: the upward movement of structural resistance bands over time. For example, analysts pointed out that the lower structural resistance band rose from $72.569 on August 9th to $75.024 today.
In conclusion, in the current outlook, Bitcoin’s ability to maintain its position above the lower structural resistance band of $75,000 makes the upper structural resistance zone around $100,000 one of the key targets for the market. Conversely, a drop below $75,000 could cause $BTC to retest the support bands, particularly in the $63,000-$57,000 range.
*This is not investment advice.
Source: cryptonews.net