Bitcoin’s average buy price of 1-3 month holders may signal the next breakout.
Short-term holder behavior is a critical pivot point for Bitcoin’s bullish movements.
UTXO consolidation and dormant activity typically precede major Bitcoin price rallies.
Recent data from CryptoQuant, an analytic platform, noted that the average buy price of short-term Bitcoin holders is a key metric to watch for future price movements. According to data shared on their X account, Bitcoin’s next potential breakout could be linked to the average buy price of holders who have retained the cryptocurrency for 1-3 months.
https://twitter.com/cryptoquant_com/status/1836676388092338444
The chart shared by CryptoQuant marks several yellow circles that emphasize significant moments when Bitcoin’s price either broke through or was supported by the average buy price of these short-term holders. Each instance led to substantial price increases.
The analysis points out that this 1-3 month holding period frequently serves as a pivot point for bullish movements.
When Bitcoin reached its peak at $73,000, it was unable to surpass the average buy price of short-term holders, resulting in a bearish trend.
This demonstrates that the behavior of these holders can heavily influence Bitcoin’s price direction, either pushing it higher or signaling a reversal when resistance is strong.
Following the recent 50 basis point rate cut by the U.S. Federal Reserve, Bitcoin is once again nearing the critical average buy price of short-term holders. Analysts are closely watching whether this time Bitcoin will break through the resistance, which could signal a potential bullish movement.
Further insights from the UTXO (Unspent Transaction Output) chart reveal that periods of consolidation among long-term holders typically precede major rallies.
The chart also shows a pattern where dormant UTXO activity led to significant upward price movements. Bitcoin’s current price is hovering around $63,080, with a 5.68% increase over the past 24 hours.
If past trends repeat, this could be a pivotal moment for Bitcoin. Analysts and investors alike are keeping an eye on whether the cryptocurrency will break through short-term resistance and continue its upward trajectory.
