Market Alert: Bitcoin’s $81K Support Zone Could Decide Its Next Big Move

As Bitcoin continues to slowly decline in price, the asset appears to be moving closer to a key psychological level. With uncertainty surrounding the continuation of Bitcoin’s current trend, speculation remains divided on whether the crypto asset is preparing for another upward breakout or entering a phase of correction.Recent on-chain data suggests that specific metrics, such as the realized price for short-term holders, are providing essential insights into the market’s behavior and potential future direction.Key Support Level Identified at $81,000In an analysis recently uploaded on the CryptoQuant QuickTake platform, an analyst known as Shayan BTC revealed that the realized price metric, particularly for the 1-3 month UTXO (Unspent Transaction Output) age band, serves as a critical indicator for assessing investor sentiment among newer market participants.This metric represents the average purchase price of Bitcoin for those who acquired the asset within the last one to three months. A sustained price above this level typically signals bullish momentum, suggesting that recent buyers are confident in holding their positions despite prevailing market volatility.Conversely, if Bitcoin’s price drops below this level, it may indicate potential selling pressure as these short-term holders attempt to limit their losses.According to Shayan, the realized price for Bitcoin’s 1-3 month holder cohort currently stands at $81,000. This level is seen as a vital support zone, acting as a “psychological and technical defense” line for both short-term and long-term investors.Historically, when Bitcoin’s price remains above this threshold, it indicates a resilient market sentiment where recent buyers demonstrate confidence in the asset’s future price potential.On the flip side, a price drop below the $81,000 mark could lead to increased selling activity, primarily driven by short-term holders looking to exit their positions to minimize potential losses. Such a scenario would likely add downward pressure to the market, potentially triggering broader sell-offs.Bitcoin Market PerformanceBitcoin has so far given investors a boring holiday season with its lackluster performance. Particularly ever since the past weeks towards the middle of December, Bitcoin has fallen below the $100,000 price mark and has remained below it with little to no upward movement.Over the past two weeks, Bitcoin has now dropped by 10.9%.2% as it remains below the $100,000 price mark.  However, its past day performance has been quite interesting. Over this period, BTC has seen a sudden increase of 4% to a current trading price of $95,519, at the time of writing.Interestingly, despite this sudden surge, this price mark puts Bitcoin at a roughly 11.9% decrease away from its all-time high of $108,135 registered in the middle of December.Featured image created with DALL-E, Chart from TradingViewWeiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC