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The Bitcoin price appears to have settled within the $92,000 – $102,000 consolidation range, sparking discussions about the coin’s future trajectory. While it remains unclear whether the premier cryptocurrency has enough momentum to forge new all-time highs soon, it would take significant bearish pressure to pull down the BTC price. Nevertheless, the latest on-chain data shows a specific level that could be crucial to the Bitcoin price in the short term. Here’s How $96,000 Could Be Critical To BTC Price
In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym ShayanBTC explained how the realized price of a certain investor class could influence the Bitcoin price trajectory in the short-to-mid term. This analysis revolves around the Realized Price of Unspent Transaction Output (UTXO) age bands, which evaluate the holding pattern of different investor cohorts through different realized prices.
The UTXO age bands metric measures the average price at which Bitcoin holders purchased their coins compared to how long they’ve held the assets. The relevant age band in ShayanBTC’s analysis is the 1-month to 3-month group, which offers insight into “short-term holders’ behavior and overall market sentiment.” Related Reading Dogecoin Whales Desert Market: Number Of $100,000 Transactions Nosedives 70% 23 hours ago
According to the Quicktake analyst, the realized price of Bitcoin holders in this short-term investor cohort has historically served as critical support levels. Historically, the Bitcoin price has often found a cushion above this realized price, suggesting that investors are doubling down on their positions. Source: CryptoQuant
Recent data from CryptoQuant shows that the Bitcoin price is currently holding above the realized price of the 1-3 month cohort. As of this writing, this UTXO age band’s average purchase price is around the $96,000 mark.
ShayanBTC highlighted the importance of the Bitcoin price holding above $96,000 in maintaining the current bullish narrative. “Holding above this key level reinforces a bullish market sentiment, increasing the likelihood of an extended upward trend,” the Quicktake analyst noted.
On the flip side, a breach beneath the crucial $96,000 support could trigger a shift in investor sentiment from confidence to fear. Ultimately, the failure of this crucial level could force some investors to distribute their coins, threatening the upward trajectory of the BTC price. Bitcoin Price Stays Above $96k
As of this writing, Bitcoin is valued at around $96,500, reflecting no significant move in the past 24 hours. After starting the week above $100,000, the flagship cryptocurrency quickly fell toward $92,000 due to bearish pressure triggered by new US trade policies. According to CoinGecko data, the price of BTC is down by nearly 4% in the past week. Related Reading 49,700 Dormant Bitcoin Just Moved—What’s Next For BTC’s Price? 3 days ago The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from iStock, chart from TradingView