A noteworthy analysis regarding Bitcoin’s critical support level has been shared in the cryptocurrency market. Crypto analyst Murphy stated that the $64,500 level is a key support point for Bitcoin, but added that the current selling pressure is not strong enough to quickly push the price below $60,000.
Murphy stated in his analysis that Bitcoin is based on what he defines as the “historical average cost level,” which is the average cost of purchase for long-term investors. According to the analyst, when the price approaches this average cost level, approximately $64,500, a critical threshold is reached in terms of market psychology.
Indeed, Bitcoin experienced brief dips below this level on February 23-24 and 27-28, but quickly recovered. Murphy interpreted this as “bulls putting up a strong defense in the sensitive support zone.” The analyst noted that the sharp drops seen previously when short-term investors approached their cost basis did not occur with the same speed this time.
According to Murphy, the biggest uncertainty in the market stems from the geopolitical tensions between the US and Iran. He stated that the scope, duration, and especially the impact on oil prices of this process need to be closely monitored.
However, it is believed that the selling pressure has not yet intensified sufficiently due to the limited participation of institutional investors and market makers over the weekend. This makes it difficult for Bitcoin to make a rapid break below $60,000 for now.
The analyst stated that the final direction will become clearer when US stock markets open.
*This is not investment advice.
