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Bitcoin Will Be Ready for New ATHs If It Breaks This Resistance: Analyst — TradingView News
An analyst explained how Bitcoin could be positioned for new all-time highs (ATH) if it can break above this on-chain resistance level.
Bitcoin on-chain data may suggest that this level holds major resistance
In a new post on X, analyst Ali discussed Bitcoin’s current on-chain resistance. In on-chain analysis, the strength of support and resistance levels is based on the total amount of cryptocurrency last acquired at each level.
Below is a chart for Glassnode’s UTXO Realized Price Distribution (URPD) metric, showing the distribution of supply across various price levels based on where investors purchased their coins.
BTC News
From the chart, it is visible that in terms of levels currently above the spot price, the $66,250 mark stands out as it hosts the cost base of over 2% of all Bitcoin UTXOs.
In general, the cost base is a special level for any investor and is naturally more likely to react when tested again, as this can lead to a reversal of their profit loss situation.
The spot price retesting a level will not produce much reaction if only a few investors share their cost base around the level. However, if many holders buy there, the cryptocurrency could see visible effects after a retest.
Investors who are losing money could expect a retest of exiting at break-even, as they may fear the asset will fall again in the future, so getting away with their initial capital would seem ideal. decision.
Therefore, a retest of a dense UTXO level from below can lead to a selling reaction in the market, making these levels strong resistance points for Bitcoin.
Since the $66,250 level appears to be where the majority of coins have been purchased between successive levels, this level may be the most difficult for the cryptocurrency to break above.
On the bright side, levels after this point are relatively low. “Once BTC breaks this level, it will be positioned for new all-time highs!” explains the analyst.
Market intelligence platform IntoTheBlock also discussed on-chain cost-based distribution in an X post today. As revealed by the company, approximately 10% of all addresses acquired their coins between the current spot price and the all-time high the asset reached in March.
This would naturally mean that 10% of the total addresses, or 5.16 million, are in the red on the Bitcoin network.
Bitcoin price
Bitcoin has continued to move in its recent range, with its price currently trading around the $62,800 level.