💥💥💥Breaking This Resistance Will Set Bitcoin Up For New All-Time Highs: Analyst
If Bitcoin is able to overcome this on-chain resistance level, according to one expert, it may be in a position to reach new ATHs.
Analyst Ali recently wrote on the on-chain resistance that Bitcoin is now facing in a post on X. The quantity of bitcoin last obtained at each level determines the degree of support and resistance in on-chain analysis.
The URPD statistic, developed by Glassnode, displays the distribution of supply across different price points according to the marketplaces where investors purchased their coins. You can see this data graphically in the chart below.
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Investors are more prone to respond when the cost basis is retested since it might cause a flip in their profit-loss position. The cost basis is a particular level for all investors.
There won't be much of a response from the spot price retesting a level if very few investors are willing to divulge their cost basis around that level. Nonetheless, a retest may reveal the cryptocurrency's impact if many holders purchased there.
If an investor is losing money on an investment and is worried that the asset may fall again, a retest might be a good opportunity to pull out at break-even and avoid further losses.
So, levels that are packed with UTXOs from below might cause a market selling response, making them strong resistance areas for Bitcoin.
It seems that the majority of coins were acquired at the $66,250 level, therefore it could be the most difficult barrier for the cryptocurrency to surpass.
