Strong rallies need to be more aware of market resistance areas
After a long period of unusually low volatility, Bitcoin's
BTC
27,653
The next major price move could be imminent and could push BTC up to $32,000. This price level is where Bitcoin's "true cost basis lies".
To calculate Bitcoin's average cost basis - the average price at which BTC is purchased - the perpetually lost coins were removed from the calculation and the focus was on active Bitcoin investors.
"This is where the mean reversion level is, so a bounce to that level would not surprise me, to be honest
Despite this bullishness, a large number of investors may be fed up with the bear market and waiting for bitcoin to reach that level before selling, thus putting pressure on the price.
This is the area where more resistance is about to start to be encountered.
BTC
27,653
The next major price move could be imminent and could push BTC up to $32,000. This price level is where Bitcoin's "true cost basis lies".
To calculate Bitcoin's average cost basis - the average price at which BTC is purchased - the perpetually lost coins were removed from the calculation and the focus was on active Bitcoin investors.
"This is where the mean reversion level is, so a bounce to that level would not surprise me, to be honest
Despite this bullishness, a large number of investors may be fed up with the bear market and waiting for bitcoin to reach that level before selling, thus putting pressure on the price.
This is the area where more resistance is about to start to be encountered.