Bitcoin's (CRYPTO: BTC) struggle to breach $60,000 has proved that the price is a crucial resistance level in the current bull run.
What Happened: However, the cryptocurrency has also found strong support at $50,000 and an even stronger price floor at $40,000, according to research from Chainalysis. According to the firm’s chief economist, Philip Gradwell, recent data indicates “strong support for high prices.”
Gradwell finds that 3.1 million Bitcoins have been acquired at a cost of more than $40,000 and continue to be held, while 1.6 million Bitcoins have been bought and held at above $50,000.
Buyers reportedly spent $88 billion to acquire the 1.6 million Bitcoin at an average cost of over $50,000, according to Chainalysis data.