On-chain data suggests that Bitcoin may face a major resistance at the $28,100 level. This conclusion is drawn from an analysis of the realized price, which represents the average investor’s cost basis in the Bitcoin market. When the spot price of BTC falls below this indicator, most holders find themselves underwater, while breaking above this level often leads to profitability. The focus here is on the short-term holders (STHs), who have held onto their coins for less than 155 days. These investors are known for their sensitivity to market changes, whereas long-term holders (LTHs) tend to remain unaffected by market sentiment.
Examining the chart displaying the realized price over the past few years, we observe that the BTC spot price has approached the STH realized price during the recent rally triggered by the news of Grayscale’s victory. Historically, retests of this level have been significant for Bitcoin, often determining the subsequent trend of the asset. In bullish periods, the STH cost basis offers support to the price, while during bearish circumstances, the line may act as resistance. This pattern has been evident during this year’s rally, with Bitcoin finding support at this level during retests in March and June. However, the recent crash resulted in Bitcoin finally falling below the $28,100 level.
The failed retest of the $28,100 level raises the possibility that a return to bearish conditions may ensue. The current STH realized price for Bitcoin is approximately $28,100, marking the highest point reached during the recent surge. It is plausible that the resistance provided by the STH cost basis contributed to the pullback observed in Bitcoin. If BTC continues to climb in the coming days, a retest of this level will be crucial to monitor. A rejection at this level could confirm a bearish transition, whereas a successful break might indicate that the bullish momentum is still alive.
Following the latest surge, Bitcoin is currently trading around the $27,400 mark, with investors enjoying profits of approximately 6% over the past week. The sharp surge in BTC price has caught the attention of market participants. It remains to be seen whether the cryptocurrency can overcome the $28,100 resistance and establish a new upward trend.
As Bitcoin approaches the $28,100 level, all eyes are on the realized price for short-term holders. This key resistance level has historically influenced the price trajectory of BTC, acting as a support during bullish periods and resistance during bearish times. The recent failed retest of this level suggests the possibility of a bearish transition. However, if Bitcoin manages to break through this resistance, it could signal a continuation of the bullish momentum. With Bitcoin currently trading around $27,400, investors eagerly await the outcome of this critical level. Only time will tell whether Bitcoin can conquer the $28,100 hurdle and pave the way for further price appreciation.