Bitcoin Will Be Set For New ATHs If It Breaks This Resistance: Analyst

An
analyst
has
explained
how
Bitcoin
could
be
positioned
for
new
all-time
highs
(ATHs)
if
it
can
break
through
this
on-chain
resistance
level.

Bitcoin
On-Chain
Data
Could
Suggest
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,
which
shows
the
supply
distribution
across
the
various
price
levels
based
on
where
the
investors
bought
their
coins.

From
the
graph,
it’s
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
retested,
as
it
can
lead
to
a
flip
in
their
profit-loss
situation.

The
spot
price
retesting
a
level
won’t
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
upon
a
retest.

Investors
who
are
losing
money
may
look
forward
to
such
a
retest
to
exit
out
at
their
break-even
point,
as
they
may
fear
that
the
asset
will
fall
back
down
again
in
the
future,
so
getting
away
with
their
initial
capital
would
seem
like
the
ideal
decision.

As
such,
a
retest
of
a
level
dense
with
UTXOs
from
below
can
lead
to
a
selling
reaction
in
the
market,
making
these
levels
points
of
strong

resistance
for
Bitcoin.

Since
the
$66,250
level
appears
to
be
where
the
most
coins
were
purchased
out
of
the
levels
ahead,
this
level
could
be
the
toughest
one
to
break
for
the
cryptocurrency.

On
the
brighter
side,
though,
the
levels
after
this
point
are
relatively
thin.
“Once
BTC
breaks
past
this
level,
it
will
be
positioned
for
new
all-time
highs!”
explains
the
analyst.

The
market
intelligence
platform
IntoTheBlock
has
also
discussed
about
on-chain
cost
basis
distribution
in
an
X

post
today.
As
revealed
by
the
firm,
around
10%
of
all
addresses
acquired
their
coins
between
the
current
spot
price
and
the
all-time
high
the
asset
set
back
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.

Featured
image
from
Erling
Løken
Andersen
on
Unsplash.com,
Glassnode.com,
IntoTheBlock.com,
chart
from
TradingView.com