Bitcoin’s weakness near range highs stems from short-term holders trying to break even on underwater BTC investments, Glassnode says.
Bitcoin (BTC) recent buyers are the latest hurdle to a breakout from a stubborn trading range in place since June.
In the latest edition of its weekly newsletter, crypto analytics platform Glassnode highlighted the ongoing significance of Bitcoin’s speculative investor base.
Short-term holders (STHs) — those holding BTC acquired within the past six months — are currently around 7.2% underwater on their investment in aggregate. The cohort’s cost basis, also known as realized price, which Glassnode calculates at $68,700, thus forms a key resistance level to clear.
“The cost-basis ladder frames the stalemate. Spot sits just above the Median Realized Price at $63.0K, the level that splits every coin’s cost basis down the middle, and below the Short-Term Holder Cost Basis at $68.7K, the average entry of the market’s most recent buyers,” it wrote.
Bitcoin realized price data. Source: Glassnode
BTC/USD has been wedged in a narrow range between $58,000 and $68,000 since the start of June. As Cointelegraph reported, a separate battle between buyers and sellers continues within that range, with a 50-month trend line near $65,800 now keeping price even more constricted. Analysis sees this as a classic phenomenon during Bitcoin bear markets, with a downside resolution increasingly likely.
This week, trader and analyst Rekt Capital additionally warned that $63,000 was weakening as local support, with price gaining progressively less ground with each rebound from that level.
Bitfinex Alpha, the research arm of crypto exchange Bitfinex, noted that a significant portion of the BTC supply has moved onchain during the range-bound period.
Related: Bitcoin miners earn under 0.7% of revenue from fees in new 10-year low
“The reason the boundaries are so stubborn is due to ownership. The $62,000-$65,000 band holds 1,794,308 BTC at this cost basis, 8.93% of circulating supply per the UTXO Realised Price Distribution (URPD), with the largest holdings at ~$63,800,” it reported on Wednesday.
URPD records the price at which coins last moved onchain, with the 1.79 million BTC tranche equal to approximately 8.9% of the total circulating supply.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
