Bitcoin is currently above a significant support level. The Global In/Out of the Money chart, a metric used to evaluate the distribution of bitcoin held in various profit and loss positions, suggests that there is currently a substantial support level around the $42,000 price level.
Bitcoin is currently above a significant support level. The Global In/Out of the Money chart, a metric used to evaluate the distribution of bitcoin held in various profit and loss positions, suggests that there is currently a substantial support level around the $42,000 price level.
The indicator works by analyzing the price at which current addresses purchased Bitcoin and comparing it to the current price. This provides a clear visualization of how much supply is “in the money” (profitable) or “out of the money” (unprofitable). According to this indicator, a large majority of Bitcoin addresses are currently in a profit state, which typically translates into a strong support level as fewer investors are likely to sell at a loss.
However, while the indicator provides valuable information, it is not the only determinant of Bitcoin support and resistance levels. Traditional technical analysis on the BTC/USDT chart also plays a crucial role in defining possible movement scenarios.
From a technical standpoint, Bitcoin has been testing the resistance of the 50-day EMA, a level widely watched by traders looking for bullish or bearish confirmations. A sustained position above this line is often considered a bullish signal, while a drop below could indicate a bearish trend.
Looking ahead, the key resistance to watch is the recent high, where Bitcoin faced considerable selling pressure. If Bitcoin maintains its current levels and rebounds higher, it would need to overcome this resistance to confirm a bullish continuation. Conversely, if the price were to fall below the 50-day EMA, the next critical support lies at the 200-day EMA, a level that has historically been a strong buy zone for long-term investors.
The confluence of the GIOM indicator and traditional technical analysis offers a detailed picture of Bitcoin’s current position in the market. The strong support level of $42 trillion indicated by the IntoTheBlock indicator suggests a solid foundation, where a significant portion of investors are holding on to their assets, providing some psychologically important price stability.
