In a striking turn of events, Bitcoin's (BTC) short-term holder cost basis—a key onchain metric—is indicating that the upside for BTC price might not have reached its zenith yet. As we've seen in the past, this data could suggest a bullish outlook for the world's leading cryptocurrency, but there's a potential hurdle at $84,000 that could temporarily delay any recovery.
The Resistance at $84,000
Sources familiar with the matter have pointed out that the $84,000 level has historically served as a significant resistance point for Bitcoin. This psychological barrier, combined with the sheer magnitude of the recent rally, could make it challenging for BTC to break through this level in the short term.
What does this mean for retail traders?
For retail investors, this resistance could create an opportunity for strategic buying. As things stand, any pullback towards $84,000 might be a chance to accumulate more Bitcoin at a potentially lower price before the next leg up. However, it's crucial for traders to exercise caution and manage their risks accordingly.
The Picture Emerging
As we watch the unfolding events, the picture emerging is one of a market that's far from exhausting its potential. The short-term holder cost basis—which measures the average price at which coins were last spent—is pointing towards a higher high for Bitcoin's price. This could signal further gains in the coming days.
"The cost basis suggests that we could see Bitcoin push towards $92,000 in the near term," said one analyst, echoing sentiments shared by many in the community.
Is this the turning point?
While the cost basis data is certainly bullish, it's essential not to get carried away. The crypto market is known for its volatility, and any sudden shift in sentiment could cause a swift correction. As such, while the cost basis suggests a potential turning point, it's important to remain vigilant and prepared for any eventuality.
Bottom Line
As Bitcoin continues its ascent, the short-term holder cost basis is pointing towards a potential next stop at $92,000. However, the resistance at $84,000 could cause a temporary setback. Traders would be well-advised to use tools like our crypto profit/loss calculator and liquidation price calculator to manage their risks in this volatile market.
Meanwhile, investors should keep a close eye on Bitcoin's price action and remain prepared for any sudden changes in the market. With the crypto tax season just around the corner, it might also be a good idea to start using our crypto tax calculator to stay ahead of the game.