Bitcoin Recovery Stalls as Key Cost Basis Levels Come Under Pressure
Bitcoin might have had a remarkable recovery from $84,000 at the beginning of the week. However, a supplier bottleneck from the annual opening at $93,000 tempered the optimistic outlook. The BTC/USD pair is currently trading below the average realized price (cost basis) for the majority of age groups, according to data from CryptoQuant. Darkfost, a CryptoQuant analyst, says this indicates that market volatility is increasing.
The first area we want Bitcoin to reclaim is the realized price of the youngest LTH band,
Darfost
Darkfost shared his insight with the community on Friday in a post on X. He mentioned that Bitcoin investors who have held their coins for six to twelve months have a cost base of about $97,000.
This level marks the transition between STH and LTH. Breaking above it would put those investors back into a comfortable position, restoring their expectations of potential gains and encouraging them to keep holding rather than selling, which will bring some stability.
Darfost
Long-Term Holders Signal Confidence as Bitcoin Dips
Analysts stress that as long as long-term holders retain their confidence, Bitcoin will continue to be in a fundamentally sound position despite the recent decline. Despite increased price volatility, on-chain data indicate that older cohorts are still spending less. This indicates that seasoned investors are not giving up. Because long-term investors usually serve as the market’s stabilizing factor during uncertain times, this resilience is crucial. Analysts predict that selling pressure will considerably lessen and sentiment will return to accumulation if Bitcoin is able to regain the $97,000 realized price level.
BTC Faces Major Resistance: Will a Break Above $100K Happen?
The liquidity pockets between $93,000 and $100,000, which currently serve as significant resistance zones, are being attentively watched by traders in the future. A clear break above these levels would lead to a more significant change in momentum and possibly pave the way for a retest of earlier highs. In order to determine whether Bitcoin can regain its upward momentum, market participants are also keeping an eye on macroeconomic drivers, such as institutional flows and U.S. inflation data. For the time being, the crucial turning point that can regain market trust and pave the way for Bitcoin’s next significant move is the recovery of the youthful LTH cost base.
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