After an impressive start to the third quarter, Bitcoin prices have struggled to replicate bullish forms from the past two months of July. Less than two weeks later, the flagship cryptocurrency shows signs of mounting the actual, sustained run to a new high.
However, the market appears to have gained some confidence from the speed-up-two-version season, with many expecting Bitcoin prices, which will witness upward momentum in the coming weeks. The latest on-chain data has identified key levels market leaders watch to maintain this upward bias.
Why $114,500 is an important support area for Bitcoin prices
In a September 20th post on the X Platform, Crypto analyst Axel Adler Jr. shared an interesting on-chain perspective on the current setup of Bitcoin prices. According to online experts, as long as BTC prices are above the $114,500 level, Bull Run could resume.
This rating revolves around the volume-weighted average price (VWAP) band. This represents the average price of assets weighted by transaction volume (Bitcoin in this scenario). The metric plots two upper and lower bands. These act as dynamic support and resistance levels of asset prices.
According to Adler Jr., the 14-day VWAP band is currently absorbing the sales pressure facing Bitcoin prices. The band is around $114,500 and the price level is a huge support cushion for market leaders.
Source: @AxelAdlerJr on X
On-chain analysts said that as long as the price is beyond this $114,500 region, the best cryptocurrencies are likely to retain that upward bias. “As long as the price is above VWAP and avoids the lower half of band-1/-2, the base case scenario continues to have short absorption and integration with an upward bias,” Adler Jr. said.
Adler Jr. highlighted the futures pressure index, which fell to 32.5 around quarterly bear pressure. However, the Bitcoin spot market continues to show excellent resilience, analysts on the chain said.
Now investors need to see and see if this resilience will lead to real upward momentum in the coming weeks.
Bitcoin price at a glance
At the time of this writing, BTC prices are just under $116,000, not reflecting any significant moves over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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