Bitcoin trading is close to $90K as chain cost base areas reveal key market levels
Bitcoin continues to show new signs of motivation, and in the recent correction phase, the ground loss of assets recovered. BTC has exceeded $89,000 and traded at about $89,062 at the time of writing, up 2.3% in the past 24 hours.
With a current $90,000 score, attention has shifted to the behavior of various investor cohorts and how their average cost base affects upcoming price action.
While traditional chart levels such as resistance and support are still important to many traders, a more data-driven view emerges from on-chain analysis.
Cost base area display key levels to view
Crypto contributor Crazzyblockk recently highlighted the critical cost base level in the Bitcoin holder space, thus providing insights into the main price response.
These areas are derived from the realization price of Bitcoin holdings of different age groups, and it turns out that these areas can be used to identify possible support and resistance.
The data is centered on the price implemented, which is the average price each holder gets for their Bitcoin, which is divided by how long the asset remains.
According to the analysis, the average cost basis for a short-term holder who is usually defined as holding BTC for up to 155 days is approximately $91,500. This level currently represents a key area of resistance as it shows that many recent buyers are starting to get rid of losses and make profits.
Meanwhile, the cost basis for new holders, especially for the age group of 1-3 months, is estimated to be around $83,700. Given that it reflects the average entry point for recent market participants, the series is a support area.
When the price of Bitcoin remains above this threshold, new buyers are more likely to maintain their positions, potentially reducing short-term sales pressure. Instead, a decline below this level may lead to a surrender of new holders, thereby introducing downward volatility.
Cost-Based Analysis provides insights into investor behavior
The approach behind these observations relies on the unpaid transaction output (UTXO) of Bitcoin based on age and calculating the price-segmented per group implementation.
This allows analysts to identify where the investor group may be stuck in profitable or lossy positions. Crazzyblockk explained that these areas are dynamic support and resistance levels, not based on technical indicators, but on actual market behavior.
This data-driven metric helps to shift market movement more than just short-term speculation. If Bitcoin exceeds the implementation price of short-term holders approaches $91.500, it can indicate a continuation of bullish behavior as more and more holders re-enter profitability.
On the other hand, a breakdown of support levels below the support level at around $83.700 may introduce new sales pressure, especially for participants participating during recent rally.
Feature images created with DALL-E, TradingView’s chart
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