Crypto analyst Joao Wedson has highlighted a critical threshold for the price of Bitcoin. According to Wedson, it is crucial that Bitcoin does not lose the $63,700 level.
The analyst said a downward breakout of this crucial level in the chain could trigger a further downward move in the market.
Wedson said that if this level is lost, the downside risk zones for Bitcoin could be $57,000, $52,400, and in a worst-case scenario, $48,700. According to the analyst, these levels stand out as critical support zones shaped by on-chain data and investor behavior.
On the other hand, Wedson emphasized that these price levels are not static, but are dynamically updated daily based on investor behavior on the blockchain. Therefore, capital movements and the positioning of investors in the market result in a constant recalculation of these levels.
The analyst also said that the loss of important structural levels on the market chain usually signals the start of a new redistribution process. During such periods, it is believed that asset shifts may occur between strong and weak market hands, and price movements may become more volatile.
At the time of writing, the BTC price is trading at $67,785.
*This does not constitute investment advice.
