Bitcoin (BTC) has recently found support at the $74,000 level, a key price point where over 50,000 BTC are concentrated. These coins, held by long-term investors who have been inactive since early March, offer significant cushion against further declines. This level marks the first major supply cluster below $80,000, with additional cost basis levels at $71.6K and $69.9K providing further support in the short term.
Key Price Action and Support Levels for Bitcoin
Bitcoin’s price action suggests that the $74K zone is providing substantial support, reflecting a pattern seen during previous bull markets. Between $74K and $70K, around 175,000 BTC are distributed across various cost basis levels. This distribution helps create a soft floor for BTC, making it more resilient to sharp declines. The largest concentration of these coins lies at $71.6K and $69.9K, where past market corrections have seen stabilization.
Cost Basis Clusters: $69K as a Soft Floor
Cost basis clusters, which represent the average price at which coins were last moved, often act as key support or resistance zones. For Bitcoin, the short-term holders’ (STH) realized price stands at $89K, but the critical zone lies at $69K. This level corresponds to -1 standard deviation from the average and has historically served as a soft bottom during market corrections. The concentration of BTC around this price suggests limited capitulation risk, reinforcing $69K as a crucial short-term floor.
For now, $BTC seems to have found support at $74K. This aligns with the first major supply cluster below $80K – over 50K $BTC at $74.2K. This level is mostly held by investors who had been active for five months, steadily raising their cost basis until 10 March, after which… pic.twitter.com/d3g42Mp6OE
— glassnode (@glassnode) April 7, 2025
Lessons from Previous Bull Markets
Historically, Bitcoin’s price has often stabilized near the $69K zone during market corrections before bouncing back. This level has acted as a turning point in past bull markets, emphasizing both its technical and psychological significance. The current market structure mirrors previous trends, with long-term holders maintaining their positions while short-term traders hover near break-even, reducing panic selling and helping stabilize sentiment.
The recent dip to $77K was quickly met with a rebound, suggesting that the $74K-$70K range could serve as a soft floor for Bitcoin. Despite bearish signals from the RSI and MACD, the historical buyer interest below $80K lends credibility to the $74K support. A move above $74K could signal a local bottom, potentially reigniting bullish momentum. However, a breach below $70K could lead to a deeper correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin Sinks to $74K, New ATH Expected in 2025
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