The price of Bitcoin (BTC) looks to be falling below the $19,000 support level. On-chain data indicates that this decline may prompt investors to withdraw their long positions, resulting in a sell-off.
According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, the price of Bitcoin has fallen below a significant demand threshold.
More than 1.74 million addresses acquired around 880,000 BTC at an average price of $19,240. These addresses may soon begin selling a portion of their assets in order to prevent substantial losses.
Because the IOMAP indicates that there is little to no support below the price of bitcoin, a sudden increase in the amount of selling pressure at these levels might set off a severe price drop. In reality, the next significant support area is around $16,000.
The price of bitcoin has to retake $19,240 as support as quickly as possible in order to prevent a severe sell-off. In order for Bitcoin to have the power to recover to $20,000 or higher, it has to go back over this critical threshold.
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