Bitcoin faces key levels based on short-term holders’ costs – transfer to $132K?

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Bitcoin faces key levels based on short-term holders’ costs – transfer to 2K?

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With bullish momentum building, Bitcoin trading is above the $95,000 level and the market looks poised to gain a potential breakthrough. After weeks of strong price action, the Bulls are now aiming to recover $100,000, an important psychological and technical milestone that could trigger more upside potential. Analysts are becoming more optimistic as sales pressure fades and investor sentiment becomes more constructive. However, the broader environment remains uncertain as global tensions and macroeconomic instability still cast a shadow on the market.

Despite the risks, on-chain data still supports bullish papers. According to GlassNode, the short-term holder (STH) cost base is currently $93,460, a key level that may determine the near-term direction of Bitcoin. Holding the above threshold shows that recent buyers are still making profits, which usually enhances market confidence and reduces the likelihood of surrender.

If Bitcoin maintains its strength above the region, analysts believe it can open the door to continuous gatherings towards historical peaks (ATH) and beyond. On the other hand, a decrease in the cost base below STH may indicate weakening of support and potentially retrospectively to lower demand areas. When the market entered the decisive stage, everyone’s eyes were on the $100,000 breakthrough.

Bitcoin builds momentum as buyer guards key support levels

Bitcoin soared more than 15% in less than three weeks, returning to strength during prolonged volatility and consolidation. Recent moves have pushed BTC to the highly anticipated $100,000 level, with the price hitting $97,900 before facing temporary resistance. Market sentiment has shifted decisively against the Bulls, and many analysts have pointed out that continued momentum and potential breakthroughs may affect the next stage of the Bull cycle.

Top analyst Ali Martinez shared on-chain insights, highlighting the importance of the short-term holder cost base, currently at $93,460. This level represents the average acquisition price recently entered the market and is seen as a crucial line of defense. As long as Bitcoin exceeds this threshold, the structure is still optimistic. Martinez suggested that maintaining this support could ignite towards a $132,330 rally when short-term holders are still making profits in previous bull markets.

Bitcoin Short-term Holder Behavior Analysis | Source: Ali Martinez on X

However, bullish situations are cautious. A drop in levels below $93,460 could indicate a weaker demand, triggering a potential correction of $72,420, a move that will test deeper liquidity areas and get rid of speculative positions. But for now, the path with the least resistance has risen. As the broader market warms up and the alignment of bullish catalysts, Bitcoin’s current structure suggests that the rally may be far from over.

BTC price analysis: Resistance below $100K

Bitcoin traded at $95,856 after reaching a local high of $97,900, showing signs of a momentum below the psychological $100,000. As can be seen from the daily chart, BTC has been on a strong upward trend since mid-April, recovering 200-day EMA and SMA, now at $86,200 and $90,200, respectively. These moving averages are now the key dynamic support levels.

BTC test resistance level below $100K | Source: BTCUSDT chart in trading

The graph shows a clear rejection around the $100,000 resistance zone, which is consistent with the historical supply pressures at previous highs. Still, the price is in a healthy integration below resistance, indicating that the bullhead is not ready to give up control. A slight drop in volume indicates a pause or potential callback, but the lack of signs of sales seems to be a sign of strength.

If the Bulls manage to recoup $97,900 and put $100,000 in support, the next target is about $103,600. However, failure to break this level could trigger a short-term backtrack of the region between $93,000 and $90,000. $93,460 above $93,460 that matches the cost of a short-term holder is critical to avoid further disadvantages.

Featured images from DALL-E, charts from TradingView

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