Like Bitcoin Bulls aim to restore an upward price trajectory, can face the resistance of sellers near the level of $ 113,600, according to data in the chain.
BTC has already recovered $ 112,800 of the levels of less than $ 108,800 beaten on Tuesday, according to Coindesk data. The rebound is likely to be fed by a new historical maximum in the S&P 500 and a better gains report than the expected Nvidia, one of the companies that quote in the world’s largest stock market by market value and a vulgar for everything related to artificial intelligence.
The way ahead can be challenging, since investors who have a loss can seek to sell in any price bounce.
“Currently, Bitcoin quote under the cost base of the 1 month ($ 115.6k) and 3 months ($ 113.6k) cohorts, leaving these investors under stress. Therefore, it is likely that any help rally finds resistance, since short -term headlines seek to leave Breakeven, “said Glassnode analysis firm in a report published on Wednesday.
Glassnode’s cost base metric reveals the average purchase prices in which digital assets have been acquired by wallets with different retention durations. For example, the cost base of three months of $ 113,600 indicates that investors that have assets purchased in the last three months paid, on average, this price level.
Mixed flows
From now on, the spot market flows suggest a uphill battle for the bulls ahead, while ETF and corporate activity suggest otherwise.
“The punctual demand remains neutral, since the perpetuals are inclined down with negative CVD. The current financing rate of ~ 0.01% points to fragile neutrality. If the price breaks above $ 112.4k with volume, it opens the way to $ 114k – $ 116k”, Timothy Misir, head of research, Brn.
That said, ETF entries and BTC corporate adoption continue to absorb a significant market supply, offering a bullish hope, Misir explained.
“ETF flows continue to strengthen with $ 81 million for Bitcoin ETFs and $ 307 million for ETF Etter during the last day. ETF, companies and governments are now absorbing ~ 3,600 btc/day, which translates into ~ 4x Mine issuance. Metaplanet announced a new plan to raise $ 881 million to buy $ 837 million in Sep – Oct, supply of 18. BTC, “he said.
Measure key support
If BTC rises lower, then $ 107,000 is the key support level to see.
This is because Glassnode’s analysis shows that the six -month cost base is at that level. Therefore, a lower break would cause these holdings to sell, which could cause a deeper decrease.
“The 6 -month cost base is about ~ $ 107K. A sustained movement below this level runs the risk of triggering fear, which could accelerate the downward impulse,” said Glassnode.
