Key Bitcoin Support and Resistance Levels

The price trend of Bitcoin has always been the focus of attention of traders and investors since its inception. Looking at the price chart, there are certain key areas that have acted as support and resistance levels for Bitcoin in bullish and bearish markets.

The meaning of support and resistance in technical analysis are areas where the dynamics of supply and demand from traders tend to reverse or stop the price trend. The support level indicates the strength of the buyers in a price range that prevents it from falling further. On the other hand, the resistance level indicates the strength of the sellers in a price range that prevents it from rising further.

Support and resistance levels can be identified using various tools and methods. In this article, we will examine the main support and resistance levels of Bitcoin in monthly, weekly and daily time frames. We also use on-chain data to further verify these key levels. Identifying support and resistance levels can help traders identify entry points, limit losses, and set price targets.

Bitcoin supports and resistances in different time frames

The correct diagnosis of Bitcoin’s support and resistance levels is very effective in predicting its price. Therefore, we examine the support and resistance levels of Bitcoin in three time frames: monthly, weekly and daily. A summary of the data of these reviews is as follows:

• Monthly time frame: support between $13,500 and $20,000 and resistance between $60,000 and $69,000
• Weekly time frame: supports at $24,500, 19,500, 16,000, and 13,500 and resistances at $30,000, 38,500, 47,500, 57,000, and 69,000
• Daily time frame: supports at $28,000, 26,400, 24,800, 23,000, 20,000, 18,500, and 16,500 and resistances at 30,000, 31,200, 34,500, 38, 200, and $42,800

Stay with us for a more detailed study about these levels and their other states in the next sections.

Bitcoin supports and resistances on a monthly time frame

Bitcoin is in a long-term bullish channel after starting the 2018 bear market. Note that support and resistance levels are not lines and are considered zones.

As you can see in the picture, the price last touched the ceiling of the channel at the price of $69,000 and its last touch with the bottom of the channel was at the price of $15,500. There is a long-term static (horizontal) support zone in the $13,500-$20,000 range that the price has reacted to several times over the past 5 years. Also, there is another static resistance zone between $60,000 and $69,000.

Bitcoin support and resistance on a weekly time frame

Several key supports and resistances can be seen on the weekly Bitcoin chart. The black lines drawn on the chart represent Bitcoin’s lowest support ($15,500) and highest resistance ($69,000) in the previous cycle.

According to the Volume Profile indicator, it is possible to identify the levels where the largest volume of transactions took place in the selected time frame. These levels are considered important supply and demand areas by traders.

Therefore, the key areas of support and resistance for Bitcoin are as follows:

• Resistances: 30,000 – 38,500 – 47,500 – 57,000 – 69,000
• Support: 24,500 – 19,500 – 16,000 – 13,500

Note that these levels are considered areas. Since our analysis is on the weekly chart, these support and resistance areas can include wider price ranges than the analysis on the daily chart.

Bitcoin support and resistance on daily time frame

The daily chart of Bitcoin can show the support and resistance areas more precisely. At the time of writing this article, the price of Bitcoin is at the resistance level of $30,000. According to the chart below, Bitcoin’s next resistance is the $31,200 level.

Studies show that the area of ​​30,000 to 31,000 dollars is considered a very strong resistance for Bitcoin. If the price can successfully break this resistance area, the next resistances will be $34,500, $38,200 and $42,800.

But if Bitcoin falls, its next supports are $28,000, $26,400, $24,800, $23,000, and $20,000 respectively. In case of further decline, the price can decrease to the levels of 18,500 and 16,500. Everything depends on market sentiment.

• Resistances: 30,000 – 31,200 – 34,500 – 38,200 – 42,800
• Support: 28,000 – 26,400 – 24,800 – 23,000 – 20,000 – 18,500 – 16,500

In this article, we tried to determine the support and resistance levels of Bitcoin in different time frames. In this review, in addition to technical analysis, we also took help from on-chain data to receive confirmation.

In short, the $30,000 to $31,000 areas are known as the main resistance and the $19,000 to $20,000 areas are known as the main support for Bitcoin.

Remember that our purpose in this article is only to identify the supports and resistances facing Bitcoin and it has no bullish or bearish signal aspect.

Identifying support and resistance based on intra-chain data

Apart from technical analysis, another metric that can help us identify Bitcoin’s support and resistance is on-chain data. Examining these areas can serve as confirmation for key support and resistance levels for Bitcoin. Two such main metrics for verifying Bitcoin support and resistance levels are:

• The volume of input to exchanges from miners
• Dispersion of the realized price by lifetime bands

The volume of input to exchanges from miners

The Miners to Exchange Flow metric shows the amount of Bitcoin supply from miners. As you know, miners play a very important role in the Bitcoin network. Miners often sell their bitcoins when it is not economically viable for them to mine bitcoins in order to cover the mining costs. The graph below shows the metric of the volume of Bitcoin input to exchanges by miners.

In the figure above, the black graph of Bitcoin price and the green lines show the supply of Bitcoin by miners to exchanges. Miners are the main suppliers of Bitcoin and examining their behavior can provide a good view of Bitcoin price fluctuations. When miners transfer their bitcoins to exchanges, this action can be considered as a sell signal.

Therefore, the areas where the highest volume of supply from miners to exchanges occurs can be considered as Bitcoin support and resistance levels. The important thing to know is that resistance levels become support levels after a break.

• $28,000 to $31,000 range
• $19,000 to $21,000 range
• $15,800 to $17,000 range

Another important point is the high and continuous supply of Bitcoin by miners to exchanges in the months of June to July 2023, when the price of Bitcoin reached $31,000. This issue can show the importance and strength of the $31,000 area.

Dispersion of the realized price by lifetime bands

This metric divides bitcoins into different groups (colored charts) based on their lifetime and displays their realized price on the horizontal axis. Age Bands Realized Price Distribution metric shows how much Bitcoin (vertical axis) was bought in a certain price zone and how long it has been accumulated there.

In short, this metric shows short-term, medium-term and long-term investment accumulation at different prices. As you can see, the highest amount of accumulation for short and medium term investors is in the region of 28 to 31 thousand dollars. Also, the highest average accumulation of medium-term and long-term investors is in the areas of 17,000 and 20,000 dollars. Other areas with the largest volume of supply and demand are:

• $10,500
• $14,000
• $39,000
• $49,000
• $57,500

Therefore, an examination of the on-chain data also shows that many key areas of supply and demand overlap with support and resistance levels on the weekly Bitcoin technical chart. So that the area of ​​28 to 31 thousand dollars is known as important resistance and the area of ​​17 to 20 thousand dollars is known as important support.