A Crucial Bitcoin Price Region for Bulls

A report from on-chain analytics firm Glassnode reveals a pivotal Bitcoin price zone for bulls.

Key Metrics Indicate the Same Price Range

In its latest report, Glassnode discusses the Bitcoin investor cost basis from various perspectives. One of the first indicators shared is the UTXO Realized Price Distribution (URPD), which indicates how Bitcoin (BTC) supply is distributed among different price levels based on the last transaction value.

Pre-Crash Metrics

Before the recent price crash, very few coins had a cost basis between $70,000 and $92,000. In on-chain analysis, the investor cost basis is important, as holders may make moves when their profit-loss status is threatened. This particular range had a limited supply acquisition, creating an “air-gap” in potential demand. As a result, BTC slipped into this region when the crash occurred.

Bullish Support

Despite the drop, bulls have provided support by participating in buying in this vacant area, adjusting the URPD. Consequently, this region is better positioned for support than before, although it still remains less populated compared to other Bitcoin cost basis centers.

Short-Term Holder Insights

Glassnode’s second indicator is the Realized Price of short-term holders (STHs), who purchased their coins within the last 155 days. Historically, the Short-Term Holder cost basis serves as a reference level in bull-market trends, with significant bands acting as upper and lower price bounds.

Currently, the lower bound, which is one standard deviation below the STH Realized Price, stands at $71,000, coinciding with the previously mentioned air-gap area.

Active Realized Price

Moreover, the Active Realized Price accounts for the entire BTC network’s Realized Price, excluding the unlikely supply to return. This metric currently is at $70,000, reinforcing the essential nature of this price region across multiple key metrics

Conclusion

With shared significance among several key cost basis metrics, this price range becomes a focal point—a potential final defense line for bulls amid any further capitulation.

Current Bitcoin Price

As of now, Bitcoin is trading around $90,000, up nearly 5% in the last week.

Featured image from Dall-E, Glassnode.com, chart from TradingView.com