Bitcoin's Price Stability Bolstered by Key Accumulation Zones
1min read Bitcoin's price stability has been bolstered by key accumulation zones, as indicated by a closer look at the cryptocurrency's Cost Basis Distribution (CBD) metric. Over the past month, nearly 200,000 BTC has been accumulated above the $97,500 level, with large investors and institutions seemingly defending this price zone. This level of foundation suggests that downward pressure on Bitcoin's price should be minimal in the near term.
Additionally, investors whose cost basis is above $99,000 have obtained over 150,000 BTC, a trend evident in both weekly and monthly on-chain data. This activity indicates a change in investor sentiment, with more holders moving their cost basis up into the $99,000 range. This price point is now being viewed as a support level, which is key to ensuring Bitcoin's continued strength at higher valuations.
The short-term holder cost basis is about $92,000, which means the distance between the current market level and this lower threshold seems healthy enough to keep any kind of panic selling at bay for now. However, should we fall below the $97,500 level, things could get dicey quickly.
While larger players have been rapidly accumulating Bitcoin, retail investors have shown little inclination to add to their holdings. Santiment's on-chain data reveals a consistent decline in the number of addresses holding between 0 and 1 Bitcoin, indicating that the market's smaller participants are either taking their short-term profits or sitting on the sidelines, seemingly waiting for more advantageous conditions before they make any moves to re-enter the market.
The sustained bullish momentum often has retail participation as its key driver. However, the dip from the all-time high of over $69,000 has seen retail investors show a cooling interest in accumulating the asset, with the latest DAA data showing that Bitcoin held by retail investors on a roughly 12-month moving average is down about 30%.
