Crypto analyst Joao Wedson has pointed to a critical threshold for the Bitcoin price. According to Wedson, it is crucial that Bitcoin does not lose the $63,700 level.
The analyst stated that a downward break of this crucial on-chain level could trigger a new downward movement in the market.
Wedson stated that if this level is lost, the downside risk zones for Bitcoin could be $57,000, $52,400, and in a worst-case scenario, $48,700. According to the analyst, these levels stand out as critical support zones shaped by on-chain data and investor behavior.
On the other hand, Wedson emphasized that these price levels are not static, but are dynamically updated daily depending on investor behavior on the blockchain. Therefore, capital movements and investor positioning in the market cause these levels to be constantly recalculated.
The analyst also stated that the market losing significant on-chain structural levels usually signals the beginning of a new redistribution process. During such periods, it is believed that asset transfers can occur between strong and weak hands in the market, and price movements can become more volatile.
At the time of writing, the price of BTC is trading at $67,785.
*This is not investment advice.
