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Short-Term Bitcoin Holders Face $65,000 Resistance
#Bitcoin #BitcoinPrice #BitcoinAnalysis $BTC
Bitcoin's recent recovery faces a potential obstacle as short-term holders might liquidate their holdings near $65,000, capping the cryptocurrency's upswing.
Bitcoin's Recent Performance
Bitcoin (BTC) aims to bounce back from its July losses. However, on-chain data suggests resistance around the $65,000 mark. As of now, BTC is trading 1% higher at $63,200, recovering from a 7% loss in June. This decline reversed May's gains and was mainly driven by miner selling and concerns over ETF inflows, which may not represent bullish bets.
Short-Term Holders' Cost Basis
June's drop pushed BTC prices below the aggregate cost basis of short-term holders. These wallets, holding Bitcoin for 155 days or less, now face potential losses. According to LookIntoBitcoin, the cost basis for these holders is $65,000. Realized price, reflecting the average price at which coins were last spent, shows short-term holders in the red. This situation may lead to increased selling pressure near $65,000.
Market Analysis
Analysts at Blockware Intelligence highlighted that BTC's price is below the short-term holders' cost basis for the first time since August 2023. They expect resistance around $65,000 as short-term speculators might exit their positions at breakeven levels. Historical data shows that when BTC lost this support level last summer, prices traded sideways for two months before breaking out again.
Long-Term Holders' Perspective
On the other hand, long-term holders are incentivized to maintain or increase their coin stash. Their average cost basis is less than $20,000, significantly lower than BTC's current market price. For long-term holders, the recent 15% pullback from March's high of $73,500 is a normal bull market correction.
Blockware Intelligence noted that during the 2017 cycle, BTC experienced ten drawdowns of 20% or more. Such corrections are healthy and provide opportunities for strategic investments by those with a long-term view.
