An insightful evaluation concerning Bitcoin’s crucial support level has emerged within the cryptocurrency sphere. Market expert Murphy highlighted that the $64,500 mark serves as a vital support threshold for Bitcoin. However, he emphasized that current selling momentum lacks the strength to swiftly drive prices beneath $60,000.
Murphy explained in his report that Bitcoin’s valuation is anchored around what he terms the “historical average cost level,” representing the typical purchase price for long-term holders. He pointed out that when Bitcoin’s price nears this average cost—approximately $64,500—it triggers an important psychological barrier among investors.
Notably, Bitcoin briefly slipped below this critical point on February 23-24 and again on February 27-28 but rebounded rapidly each time. Murphy interpreted these movements as evidence of bulls fiercely defending this sensitive support zone. He also observed that unlike previous occasions where short-term traders exited quickly near their break-even points causing sharp declines, such rapid sell-offs have not been present recently.
Murphy identified geopolitical tensions between the United States and Iran as a major source of market uncertainty at present. He stressed the importance of monitoring how extensive and prolonged these conflicts become and particularly how they influence oil prices moving forward.
Moreover, weekend trading activity showed limited involvement from institutional investors and market makers, indicating that selling pressure remains relatively subdued so far. This scenario reduces the likelihood of an immediate plunge below $60,000 for Bitcoin in the near term.
The analyst concluded by noting that clearer indications regarding market direction are expected once US stock exchanges resume trading hours.
*This analysis does not constitute financial advice.