U.Today - According to Glassnode, key indicators, including an adjusted MVRV Z-Score, are shedding new light on critical Bitcoin price support areas amid ongoing market uncertainty.
The adjusted MVRV Z-Score can be used to approximate areas of critical price support for Bitcoin. The recent analysis reveals that Bitcoin's price has so far held near its mean level of approximately $96,300, acting as a temporary buffer in a period of limbo.
However, if prices break lower from the mean level of $96,300, the next major line of defense for bulls is likely to be found at the $80,100 level. This level represents a key support, below which further selling could occur if breached.
Another key indicator is Bitcoin's Short-Term Holder (STH) cost basis, which currently sits at about $92,200. This level has historically served as a key support for the uptrend, providing a foundation for buyer confidence in the event of a fall.
Per this indicator, the $71,000 to $131,000 define typical price bounds. The good news is this Bitcoin spot price remains within this range, suggesting bulls still have control, but defenses are being tested.
Meanwhile, the URPD volume profile reveals a liquidity gap below current support levels, meaning that few coins were transacted in this range. The STH cost basis at $71,000 sits at the upper bound of this gap, making it a sensitive area if the price moves lower. The $131,000 price bound hints at Bitcoin's price target if it breaks to the upside.
Key events awaited this week
Bitcoin, the first and largest cryptocurrency, has barely moved in the last 24 hours; at the time of writing, it was down 0.11% from the previous day, trading at $96,744. Since dipping to lows of $91,178 on Feb. 3, Bitcoin has consolidated in a tight range below the daily SMA 50 at $98,838, awaiting a major move.As Bitcoin (BTC) continues to put up lackluster price action below $100,000, key events this week have the potential to revive market activity. FTX, once the world's third-largest digital asset exchange, is about to commence its first round of creditor payouts after falling bankrupt in late 2022.
Wednesday will bring the minutes of the Federal Reserve's January meeting when interest rates were held steady. In an appearance last week, Fed Chair Powell stated that the bank was not in a hurry to cut rates and would want to see further progress on inflation.