Bitcoin Bulls Build Up Demand Safety Net Below $100,000 as 2.76M Addresses Accumulate 2.1M BTC

A key demand zone has formed just below Bitcoin's current price due to significant buying interest in this particular zone.

A key demand zone has formed just below Bitcoin's current price due to significant buying interest in this particular zone. On-chain data from IntoTheBlock shows that 2.76 million addresses have accumulated 2.1 million BTC at this price, creating a strong support base. This interesting data comes amidst a serious compression of the Bitcoin price as it continues to trade within a range below $100,000.

Bitcoin has remained in a tight trading range below the $100,000 mark for the past seven days, with price action dominated by repeated attempts to break higher and bouts of selling pressure. The first half of last week saw a notable decline, with Bitcoin dipping briefly below $94,000 before finding support at $93,700. This level caused a little rebound of about 6% in the middle of the week, but it wasn't enough to break above $100,000 as the rally got rejected again at around $99,300.

Now, on-chain data from IntoTheBlock reveals that amidst this back and forth, an interesting buying trend among Bitcoin bulls this week has led to the creation of a strong support base moving forward. The data shows that the $97,100 price level has become a key area of interest, with millions of BTC changing hands at this range.

In particular, the data shows that 2.76 million Bitcoin addresses acquired a total of 2.1 million BTC at prices ranging from $95,830 to $98,700, indicating a significant buying interest at this level. This insight is provided by IntoTheBlock's In/Out of the Money Around Price metric, which currently tracks the buying distribution of addresses that bought Bitcoin between $83,800 and $106,800.

The significance of this new demand zone cannot be overstated, as it represents a substantial base of holders who may step in to defend the price in case of further downside moves. It also provides a better support zone for Bitcoin to finally go on a substantial break above $100,000.

This demand zone is being tested again as Bitcoin falls in the past 24 hours to now trade within this range. If it holds, Bitcoin could establish a higher low and maintain its bullish trajectory. On the other hand, a breach of this support could cause another retest of the $93,000 support level.

As crypto analyst Ali Martinez notes, the best approach to trading Bitcoin right now is to buy at $92,000 and sell at the $106,000 resistance zone. The analyst also pointed out waiting for a decisive move beyond the $92,000 to $106,000 zone before making aggressive market entries.

At the time of writing, Bitcoin is trading at $96,570.