Bitcoin’s Key Support Level: $97,530

Crypto analyst Ali emphasizes the importance of Bitcoin’s potential support level at $97,530 in sustaining the current bullish momentum. As of January 24, Bitcoin is trading at $105,128.95, reflecting a 3.5% decline from its previous all-time high (ATH) of $109K on January 20, 2025.

Understanding Bitcoin’s Support Level

In crypto trading, support levels are crucial price points where buying demand typically increases. If Bitcoin remains above this significant threshold, it may continue its upward trajectory, with investors feeling confident in this bullish decision. This level serves as a key test of Bitcoin’s market strength during periods of volatility.

Bitcoin UTXO Realized Price Distribution (URPD)

The URPD chart, as posted by analyst Ali, provides valuable insights into where Bitcoin holders purchased their BTC or last moved their BTC. The chart indicates the number of BTC that have last moved to wallets priced at various price levels. At $97,530, the URPD chart shows a cluster of activity, signifying that many investors bought or are holding BTC around this level. Strong buying interest at this level reinforces its role as a psychological and technical support.

Bitcoin Mimicking Past ATH Trend

The behavior around $97,530 mirrors that seen in previous ATH consolidation phases for BTC. As with prior cycles, the price is stabilizing near a supportive zone with the potential for an upside. This level has shown strong buyer confidence, despite some light pullbacks.

Analyzing Sell-Side Risk

The Sell-Side Risk Ratio, which measures the pressure from investors liquidating holdings, has declined as the amount of BTC sent to exchanges for sale has fallen. This diminishing sell-side pressure is bolstering the current price stability of BTC. Additionally, shrinking volatility metrics, with BTC trading in an exceptionally narrow 60-day price range, often precede significant market events.

Will Bitcoin Sustain the Bull Run?

Crypto analyst Ali emphasizes that the ongoing bull run will largely depend on whether Bitcoin can maintain its key support level at $97,530. On-chain fundamental data confirms diminished sell-side pressure and consistent accumulation by long-term holders as indicators that the market is in a solid position to sustain upward movement.

Long-term Bitcoin holders have experienced every phase of the market cycle, and right now, greed is taking over!

If this level is maintained as support, then Bitcoin could see a retest and a new market peak towards its former ATH, boosting the ongoing bullish run. However, failing to hold $97,530 could introduce risks to the bull run.

For more cryptocurrency news and updates, visit Global Crypto News.

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