Bitcoin’s BTC ticker, down $16,793, could be busy forming fundamental support in its current tight trading range, according to the latest research.
In a Jan. 6 tweet, trading platform Trend Rider noted that $16,800 is becoming an increasingly important BTC price support zone.
Point of control established for less than $17,000?
Bitcoin’s lack of volatility has prompted commentators to debate when a breakout might occur and what direction it might go. So far, however, the tightening trading range since November’s FTX saga has remained in check. Now, on-chain analysis suggests that, contrary to some assumptions, BTC/USD may not need to fall further in the current phase of the bear market. Trend Rider looked to the one-week chart to mark $16,800 as the current 100-week point control (PoC), the price level that is generating the most volume over the specific period. The longer the period and the higher the volume, the stronger the theoretical PoC support or resistance level will be.
“Creating New Funds,” read the attached comments.
“16.8K is Bitcoin’s new 100 weekly POC.” In simple terms, this is the level where the most volume has been traded over the last 100 weeks, indicating a potential bottom formation.
If this were the case, Bitcoin could avoid the worst doomsday predictions in recent months, which include a drop to $10,000 or even below. COVID-19 breaks market bottoms in March 2020.
Whale activity inches higher
The strongest nearby support and resistance levels, according to the monitoring resource material indicators, were at $16,000 and $17,000, respectively.
A chart of the Binance order book also revealed increasing interest between the two price points from the largest group of Bitcoin whales.
“Brown Mega Whales appear to favor this Bitcoin range,” Material Indicators noted.