Since breaching last cycles $20k ATH, three distinct on-chain volume bands have formed:
- $31k to $40k (Price Floor) where over 2.98M BTC were accumulated, both in Jan 2021, and in the recent 2.5 month long consolidation. This is likely now a very strong underlying support zone.
- $45k to $50k (Current Range) where 1.65M BTC have a cost basis. With price at the top end of this range, it is likely that this too could act as strong price support.
- $53.7k to $59k (Trillion Dollar Asset) where 1.336M BTC were accumulated between March and May and are still holding unrealised losses. These coins are those that remain unshaken by a 50%+ correction in May, but could also become overhead resistance if investors seek to exit at their cost basis.
On net, this indicates that a fairly strong set of high conviction investors remain in the market and is a powerful signal for the bulls.
