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Bitcoin will be set for new ATHs if it breaks this resistance: Analyst – TradingView News
An analyst explained how Bitcoin could be positioned for new all-time highs (ATHs) if it manages to break through this on-chain resistance level.
Bitcoin on-chain data may suggest this level presents major resistance
In a new post on X, analyst Ali discussed the current resistance on the Bitcoin network. In on-chain analysis, the strength of support and resistance levels is based on the total amount of cryptocurrency last purchased at each level.
Below is a chart of Glassnode’s UTXO Realized Price Distribution (URPD) metric, which shows the distribution of supply between various price levels based on where investors purchased their coins.
NewsBTC
From the chart, it is visible that in terms of the levels currently ahead of the spot price, the $66,250 mark stands out as it hosts the cost basis of over 2% of all Bitcoin UTXOs.
Generally, the cost basis is a special level for any investor, and they are naturally more likely to react when it is tested again, as it can lead to a change in their profit loss situation.
Spot price retesting a level will not produce much reaction if only a few investors share their cost basis around the level. Still, if many holders bought there, the cryptocurrency could see visible effects after a retest.
Investors who are losing money may hope that this new test comes out at their break-even point, as they may fear that the asset will decline again in the future, so getting away with their initial capital would seem like the ideal decision.
As such, a retest of a dense level with UTXOs coming from below could lead to a sell-off reaction in the market, making these levels points of strong resistance for Bitcoin.
As the $66,250 level appears to be where most coins were purchased at the following levels, this level could be the hardest to break for the cryptocurrency.
On the positive side, however, 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, around 10% of all addresses purchased 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, equivalent to 5.16 million, are in the red on the Bitcoin network.
BTC Price
Bitcoin has continued to move in its recent range, with its price currently trading around the $62,800 level.