Bitcoin’s On-Chain Resistance Levels: A Threat to Future Rallies
Bitcoin faces on-chain resistance levels that could potentially hinder any future price rallies. CryptoQuant analyst Axel Adler Jr recently shared insights on the cost basis levels of BTC holders and the significance of Realized Price in determining market sentiment.
The Cost Basis of Bitcoin Short-Term Holders
According to Axel Adler Jr’s analysis on a recent post on X, short-term holders of Bitcoin currently have their cost basis levels ranging between $62,000 and $65,000. The Realized Price metric tracks the average acquisition price of Bitcoin on the network, offering valuable insights into investor sentiment.
- Realized Price above spot price indicates investors are at a loss
- Realized Price below spot price suggests profitability for investors
Insights into Short-Term Holders
Short-term holders, defined as investors holding Bitcoin for less than six months, play a key role in market dynamics. This cohort tends to react quickly to market shifts, often selling off during major market events such as rallies or crashes.
- Short-term holders’ behavior can impact price movements
- Historical data shows erratic trading patterns among short-term holders
Realized Price Trends
Analyzing the Realized Price trends of short-term holders provides valuable insights into market sentiment and potential price movements. The chart shared by the analyst illustrates the fluctuation in Realized Price levels over the past year, highlighting key resistance levels that Bitcoin may face in the near future.
Current BTC Price Movement
Despite briefly surpassing the $61,000 mark, Bitcoin has retraced and is currently trading around $59,000. This price volatility reflects the challenging on-chain resistance levels that Bitcoin is currently encountering.
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