- Bitcoin trades close to the CVDD × 2.618 level at $84,640, which is a key support based on historical price behavior.
- Holding above the $84K level may form a local bottom, offering the potential for a bullish move toward new all-time highs.
- A drop below $84K could shift support targets to $64,700 and $60K, aligning with prior consolidation zones from April 2021.
Bitcoin remains near a critical level as it trades at around $84K. A recent analysis by Alphractal emphasizes that Bitcoin must hold above this threshold to avoid a deeper correction. The CVDD Channel method defines key support and resistance levels using on-chain data.
A tweet from Alphractal explains that Bitcoin is currently positioned at the CVDD × 2.618 level, which stands at $84,640. The analysis shows that if Bitcoin consolidates above this level, it may form a local bottom before advancing toward new all-time highs. Conversely, failure to hold above $84K for several days could trigger a move toward lower levels.
CVDD Channel Analysis and Methodology
The CVDD Channel is based on the metric Cumulative Value Days Destroyed, which identifies Bitcoin price bottoms in each cycle. Multiple dynamic lines are added to mark historical support and resistance levels. These levels have been consistently respected by Bitcoin’s price action.
When a support or resistance line is broken, followed by consolidation, the price tends to move toward a more distant level. The method uses Fibonacci factors to set key levels, including the current CVDD × 2.618 level at $84,640. This innovative approach offers insights for investors seeking on-chain analysis.
Key Support and Resistance Levels
Bitcoin currently trades at $84,570.24, very close to the critical level of $84,640. This level serves as a local bottom indicator if the price consolidates above it. A breach below $84K may lead the price to test lower support areas.
If Bitcoin remains below $84K for several days, the next support target is projected at $64,700. An additional level near $60K may follow, matching historical price zones from the April 2021 period. These targets provide clear markers for potential market shifts.
Market Outlook
The analysis indicates that consolidation above the critical level may set the stage for a new upward move. This on-chain analysis aids investors in making informed decisions during volatile market periods.
Bitcoin maintained a 1.78% decrease for the past day and showed a 1.47% decline during the previous week. The current trading volume amounts to $16,255,414,331 within 24 hours. This dynamic analysis offers a framework for understanding future market moves.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
