This Bitcoin Price Range Could Be The Bulls’ Final Defense Line, Report Says
A report from chain analytics firm GlassNode shows that the Bitcoin price range may be crucial to the bulls.
Several key Bitcoin metrics currently point to the same price range
In the latest weekly report Glass node The cost basis of Bitcoin investors has been discussed from various perspectives. The first metric shared by the analysis company is “UTXO realizes price allocation(urpd), basically tells us how to allocate BTC supply between different price levels based on the value of the last transaction.
Related Readings
First, here’s how the indicator looks before the recent price crash:
As can be seen in the chart, few coins had a cost basis between $70,000 and $92,000 before the crash. In chain analysis, the cost base of investors is considered an important topic because holders are more likely to take some action when they threaten their profit losses. Since this range contains only a small percentage of the supply’s acquisition level, it’s an “air gap” in terms of potential demand.
This is probably why BTC can easily enter the area when the crash occurs. However, so far, the Bulls have changed the URPD by providing support as they participated in some purchases in this vacant area.
So, compared to other Bitcoin cost base centers, although it is still an empty area, the range is now better than before.
The second indicator mentioned by the Glass Festival is Achieved price Short-term holders. “Achieved Price” is a term in the full form of URPD. This indicator measure is the cost basis for ordinary investors who belong to a part of the BTC user base.
The following chart shows the trend of the indicator Short-term holder (STHS)They are Bitcoin investors who have purchased coins in the past 155 days.
“Historically, the cost basis of short-term holders has been an important reference level for rising trends across bull markets,” the analyst firm noted. “We have calculated the ±1σ band of the short-term holders’ cost basis, which are usually the upper and lower limits of local price action.”
Interestingly, this lower limit, which is below the first-level standard deviation of the price realized by STH, is currently $71,000. This is roughly the same level as the aforementioned end of the air gap area.
Related Readings
As shown in the chart of Active’s implemented price display, this is not the only other place.
The “actively realized price” basically depends on the implementation price of the entire BTC network and adds distortion. The indicator includes only “economic” supply, meaning it does not include the supply portion that the glass section determines is unlikely to return to circulation.
Currently, Active is implementing a price of $70,000, which is again the same level as the other two metrics. “Due to the massive convergence of several key cost-based indicators, this price zone becomes an area of interest, perhaps the Bulls’ ultimate defense line,” the report concluded.
BTC price
At the time of writing, Bitcoin traded at about $90,000, up almost 5% last week.
Dall-E, Featured Images of GlassNode.com, Charts of TradingView.com
