Analysis: Bitcoin's potential rally may face resistance near $65,000

According to data source LookIntoBitcoin, as of press time, the total cost basis of short-term Bitcoin holders (holding for no more than 155 days) is $65,000. This means that short-term holders are now facing losses or holding losing positions and may try to exit the market at a loss or break-even, which may increase selling pressure around $65,000. “The Bitcoin price is below the total cost basis of short-term holders for the first time since August 2023. In the short term, we expect some resistance around $65,000 as short-term market speculators may look to exit their positions at the ‘break-even’ level,” Blockware Intelligence analysts said in the latest newsletter. “Last summer, when Bitcoin lost the STH (short-term holders) realized price support level, the price went sideways for another two months before finally breaking out again,” the analyst added. At the same time, long-term holders have a strong incentive to maintain or increase their reserves because their average cost is less than $20,000, nearly 70% lower than the current market price of Bitcoin. (CoinDesk)