Over recent weekends, Bitcoin’s price hasn’t exactly dazzled, and this one appears to follow the same pattern. Friday night briefly sparked some hope with bullish indicators, but the leading cryptocurrency soon settled back into its usual weekend lull.
Following Friday’s late surge, Bitcoin’s price found itself locked in a small consolidation phase, hovering between $97,000 and $98,000. Notably, new on-chain metrics reveal that Bitcoin’s value is now confined within a crucial boundary.
Key Price Levels: $96,365 and $98,467
Renowned crypto analyst, Ali Martinez, offered an insightful on-chain perspective on Bitcoin’s pricing and potential direction through a post on the platform X. Martinez pointed out that Bitcoin is currently squeezed between two critical price points that could shape its short-term trend.
This analysis hinges on the average cost basis of various BTC holders. In simpler terms, cost-basis analysis evaluates a level’s strength as either support or resistance, based on the volume of coins last purchased by investors within that range.
According to the chart shared by Martinez, each dot’s size corresponds to the number of bitcoins bought within a price bracket, indicated in green and red. Data from IntoTheBlock reveals that approximately 1.97 million addresses acquired about 1.43 million BTC in the price window between $94,659 and $97,544, marking an average price of $96,365.
This significant purchasing activity has established a key support zone at this price level. Essentially, if Bitcoin contemplates dipping to $96,365 again, investors who entered at or near this price are likely to reinforce their positions by buying more, helping to sustain the price above this support area.
At the same time, the range between $97,650 and $99,470 is bustling with investors—nearly 1.16 million addresses with 1.16 million BTC bought. This region could present a strong supply challenge, as investors who are currently at a loss might look to sell off their holdings as soon as Bitcoin approaches their cost basis.
Flanked by these price levels, Bitcoin seems to be at a pivotal moment that could influence its trajectory in the coming weeks. Martinez concluded that "a breakout in either direction could set the trend."
A Snapshot of Bitcoin’s Price
Currently, Bitcoin is valued at roughly $97,700, reflecting a calm 24-hour period with little to no movement.
The above visualization of BTC’s daily performance comes from TradingView. The featured images are courtesy of iStock.
