Martinez, utilizing on-chain data from IntoTheBlock, highlighted that 1.87 million addresses, holding a substantial 730,000 BTC, were accumulated in this precarious territory.
The downturn has raised concerns about potential sell-offs as holders may seek to cut losses, increasing selling pressure. Martinez forewarns of a potential decline to the next demand zone, situated between $37,500 and $38,700, where 1.28 million addresses hold 553,000 .
Source: Despite these warnings, a twofold situation emerges. Martinez’s analysis reveals that buyers in profit are concentrated at levels approximately 7% below current market levels.
The question then arises: If holders at a loss begin selling, triggering a pullback to $38,700, will buyers show interest in this chaotic market where unexpected “black swan” events are always a possibility?
Source: If history repeats itself, this gap could be filled as part of a bearish move, reinforcing the possibility of a descent to the $37,500 mark.
Bulls are holding tight, but the looming challenges may put their resilience to the ultimate test.
This article was originally published on U.Today
