Bitcoin Nears Resistance Level as Short-Term Holder Whales' Cost Base of $64,000 Comes into View

On-chain data reveals that Bitcoin short-term holder whales have a cost base exceeding $64,000, suggesting a potential resistance level for BTC.

Analysis of on-chain data reveals that Bitcoin short-term holder whales have a cost basis above $64,000, indicating a potential resistance level for BTC. Following a recent rally, Bitcoin’s price is approaching the realized price of these short-term holder whales, as highlighted by an analysis in a CryptoQuant Quicktake post.

The “Realized Price” is an indicator that tracks the average cost basis shared by investors of a particular cohort. When the asset’s spot price is below this metric, holders are in a state of net unrealized loss, while a spot price above the indicator implies profits.

In the current context, two market segments stand out: short-term holder (STH) and long-term holder (LTH) whales. STHs comprise investors who acquired their coins within the past 155 days, while LTHs consist of those who have held their coins for longer. Whales are defined as entities holding at least 1,000 BTC, which applies to both STH and LTH categories.

A recent chart illustrates the Realized Price trend for these two Bitcoin groups over the past few years. The Bitcoin spot price recently dipped well below the Realized Price of STH whales during the market downturn. However, with the price recovery, it is approaching that level once again.

The average cost basis for STH whales ranges between $64,000 and $65,000, suggesting a potential retest of this level soon. Such a retest could pose a challenge for the cryptocurrency, as the STHs represent the market’s weak hands, sensitive to market changes. The cost basis is crucial for any investor, but this cohort is particularly reactive during a retest.

Most STH whales have experienced losses recently, so some may be eagerly awaiting a retest to exit the market at their breakeven level. It remains to be seen whether Bitcoin can overcome this hurdle if the current recovery rally continues to this point.

While STH whales endure losses, LTH whales remain in significant profits, with their Realized Price at just $22,000, demonstrating that patience has its rewards. Bitcoin briefly surpassed $62,000 the previous day, but its price has since retraced to $60,500. The coin’s price has been on an upward trend over the past few days.

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