After a record high of around $123,000 in the second week of July, the remaining Bitcoin price action for the month was almost choppy. However, the flagship cryptocurrency fell to just over $115,000 on Friday, July 25th. This sharp decline came along with anticipated questions in the market.
$115,000 could be important for BTC prices
In a recent post on social media platform X, Crypto Pundit Burak Tamaç highlighted the relevance of the region below the $115,000 level for BTC prices. This on-chain observation based on the BTC supply distribution URPD showed how Bitcoin prices will unfold in the near future.
Supply Delivery URPD metrics track the amount of Bitcoin supply that was last moved or transferred at a particular price level. This metric is particularly useful for identifying potential support (demand) and resistance (supply) zones.
Tamaç noted in X, Bitcoin’s unused transaction output (UTXO) distribution has a large blank space in the $110,000 and $115,000 brackets. What this means is that there have been relatively few significant transactions around this price region in the recent past.
However, this UTXO gap is above the thickness price region ($90,000-$110,000) and has significant investor activity. Considering the level of activity within this zone, there is a higher chance that the best cryptocurrency will find a support cushion within the UTXO gap.
In this regard, support is above the $110,000 price level. As mentioned earlier, after Bitcoin reached its highest ever price, the best cryptocurrencies entered the consolidation phase, almost moving sideways in the second half of July. During this soft price action, we can observe that Bitcoin’s price is not below the $115,000 price.
What this means is that the $110,000 and $115,000 zones are likely to have new UTXO support established. If Bitcoin is above this price level, we can expect to see a continuing bullish momentum. Conversely, if the support zone between $110,000 and 115,000 fails, the flagship cryptocurrency could experience a tough sale.
Bitcoin price at a glance
At the time of this writing, Bitcoin is valued at around $118,050, reflecting almost 2% jump in the last 24 hours.
ISTOCK featured images, TradingView chart
