Bitcoin to $76,000? Crucial Indicator Spells 4 Key BTC Price Levels as Market Dips

Bitcoin traded toward the lower portion of its recent trading range amid lingering concern about demand for risk assets. Bitcoin has remained in a loosely defined range between $95,000 and $85,000 for the past month as the crypto market remained in a weakened position following October’s sell-off.

Bitcoin fell below $90,000 in the last two days, reaching as low as $89,257 on Dec. 11. At the time of writing, Bitcoin was trading down 1.96% in the last 24 hours to $90,581 as investors assess the Fed’s latest rate cut.

Fed Chairman Jerome Powell said in his post-meeting news conference that the central bank is “well positioned to wait and see how the economy evolves,” and signaled a slower pace of rate cuts ahead.

In positive developments, U.S. exchange-traded funds investing in Bitcoin saw a net inflow of $224 million on Wednesday, led by $193 million for BlackRock’s iShares Bitcoin Trust, which is its highest in 30 days. Strategy bought 10,624 tokens worth $962.7 million in its largest acquisition since July.

Traders now face a mixed bag as to where the market is heading next.

Four key price levels outlined

In a recent tweet, crypto analyst Ali outlines four key Bitcoin price levels, citing the Bitcoin MVRV extreme deviation pricing bands, as the markets await what comes next.

While Bitcoin has risen back from a low of $80,524 reached in November, it still stands a risk of a turn lower and a retest and break of that level.

If this scenario plays out, support is highlighted next at $76,000, according to Ali’s analysis. The next major support is expected at $53,000.

If Bitcoin’s price reverses to the upside, resistance is pinpointed at $99,000 and $122,000, making these two price levels crucial to watch for Bitcoin’s rise.

29.8% of Bitcoin now held by major holders

In a recent analysis, Glassnode shared the composition of Bitcoin holdings by major holder type, which now totals 5.94 million BTC, or 29.8% of Bitcoin’s circulating supply.

Public companies now hold 1.07 million BTC, while governments account for 0.62 million BTC. U.S. spot ETFs hold a cumulative of 1.31 million BTC, with 2.94 million BTC held on exchanges.