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Bitcoin ‘on thin ice’ as BTC faces frosty resistance at $26k

Bitcoin 'on thin ice' as BTC faces frosty resistance at $26k

After exceeding the $28,000 mark at the end of May, Bitcoin’s (BTC) price has returned to a downward trajectory in the past weeks as recent legal actions by the US Securities and Exchange Commission (SEC) against major crypto exchanges scared off crypto investors. 

Now, to prevent a further slip to the downside, the leading cryptocurrency must remain above its support zone between $22,785 and $23,595, according to popular crypto market analyst Ali Martinez’s tweet on Wednesday, June 14.

The expert said that Bitcoin currently “sits on thin ice,” with as many as 1.34 million wallets holding a total of 450,000 BTC in the aforementioned support area.

At the same time, Bitcoin is also facing tough resistance from $26,000 to $28,250, “where 5.18 million wallets bought 2.1 million BTC,” said Martinez, citing data from the blockchain intelligence platform IntoTheBlock

Chart showing BTC investors that are in and out of money. Source: Ali Martinez

Nearly 70% BTC investors at a loss

The above chart also shows that 6.87 million, or 69.4% of Bitcoin wallets, are ‘out of the money,’ meaning they are currently at a loss. On the flip side, 2.87 million, or 28.9% of Bitcoin investors who bought the cryptocurrency at a price range between $21,976 and $29,864, are in the money. 

Bitcoin, and the broader crypto market, fell notably in recent days after the SEC launched two successive lawsuits against Binance and Coinbase, accusing them of multiple wrongdoings. 

Bitcoin price analysis  

At press time, BTC was trading at $26,000, up 0.3% in the past 24 hours as it battle to hold above the crucial psychological level. The crypto asset fell more than 1.1% in the past week, and over 3.6% on the month, losing nearly $30 billion in market cap during that period. 

BTC 1-month price chart. Source: Finbold

Year-to-date, Bitcoin’s gains still remain strong at more than 56%, marking an impressive rebound after a severe crypto winter in 2022. 

Earlier in the day, Finbold examined the CoinMarketCap crypto community’s prediction tool to gain further insights into potential price movements in the following weeks. According to the feature, which has a historical accuracy of 84.55%, BTC is estimated to slip further to $25,087 by June 30, 2023, suggesting a downside of 3.5%

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