Bitcoin speculators keep BTC price ‘pinned’ below $68.7K: Glassnode

Bitcoin's price has been stuck below $68,700, according to crypto analytics platform Glassnode. This price level is determined by short-term holders who have been trying to break even on their underwater investments. These investors, who acquired BTC within the past six months, currently hold 7.2% less than their initial cost. Bitcoin's cost basis, or realized price, is $68,700, creating a primary resistance level that needs to be surpassed.

Glassnode explains that the cost-basis ladder creates this stalemate. Currently, the price is just above the median realized price at $63,000 and below the short-term holder cost basis at $68,700. The latter cohort is underwater, making it more likely to sell during recoveries. Bitcoin has been trapped within a narrow range of $58,000 to $68,000 since the beginning of June.

Analysts predict this is a common occurrence during Bitcoin bear markets, with a downside resolution becoming more probable. Recently, trader and analyst Rekt Capital expressed concern about $63,000 weakening as a local support level, with price gains diminishing with each rebound from this level. Bitfinex Alpha, the research department of crypto exchange Bitfinex, noted that a substantial portion of the BTC supply has moved onchain while in the range-bound period.

The URPD, which records the price at which coins last moved onchain, indicates that 1.79 million BTC are held at a cost basis of approximately $63,800, representing 8.9% of the total circulating supply.