Bitcoin is facing certain resistance levels on the chain that could threaten future gains. Here are the exact prices at which these levels are located.
Short-term Bitcoin holders have a cost basis at these levels in the future.
As CryptoQuant author Axel Adler Jr. explains in a new article, mail In X, the base cost levels for short-term BTC holders currently range between $62,000 and $65,000. The on-chain relevance metric here is the “realized price,” which tracks the average acquisition price on the Bitcoin network.
When this indicator is higher than the spot cryptocurrency price, it means that the average investor in the market is in a tight spot right now. On the other hand, when it is lower than the value of Bitcoin, it indicates that profits are dominating the network.
In the context of the current topic, we are not interested in the price achieved by the entire user base, but only the price of a specific segment of it called short-term holders (STHs). Short-term holders refer to investors who have bought their coins within the past six months.
This Bitcoin group has historically behaved erratically, readily selling whenever there is a major change in the market, such as a spike or crash.
Below is the chart shared by the analyst that shows the trend in the realized price of STH Group, as well as some of its sub-sections, over the past year:
As you can see in the chart above, the current realized Bitcoin STH price is around $64,000, meaning these investors are in a net loss. Breaking down the realized price for each tranche of the pool reveals that investors who bought between 3 and 6 months ago are in the deepest loss with their cost basis at $65,800.
Investors who have invested for one to three months are close to the average of the entire group, with the metric at $64,200. More recent buyers (one week to one month) are in the best position, having acquired their coins at an average cost of $62,400 per token.
For any investor, the cost basis is of course an important level, but high-cap stocks may be particularly sensitive to retesting it. Therefore, if the price rises to one of these levels, the holders of those stocks are likely to react.
However, since STHs are currently holding a loss, they may be looking to retest so they can sell and recoup their investments. Therefore, Bitcoin may face some resistance when it rises to these realized price levels.
Bitcoin price
Bitcoin price rose above the $61,000 level, but it appears to have seen a sharp decline since then, with its price already back to $59,000.