Bitcoin Surges 3.5% In Week, Eyes $91,500 Resistance

Bitcoin has recently demonstrated signs of renewed strength, with the leading cryptocurrency surging nearly 3.5% over the past week and trading in the high $80,000 range. This upward movement has sparked discussions about Bitcoin's potential to decouple from traditional markets, especially amid the global equity market downturn.

In a recent analysis, contributor Crazzyblockk outlined Bitcoin's various cost basis zones and realized price cohorts to identify key resistance and support levels. The analyst noted that short-term holders, those who have held BTC for less than 155 days, currently have their realized price, or average cost, sitting at the $91,500 resistance level. This group is considered the most price-sensitive. On the other hand, the cost basis for new holders, those who have held the digital asset for one to three months, currently has its strongest support level around $83,700. This level represents the cost basis of recent market participants, who often lead short-term trend changes.

Cost basis zones are price levels where a significant amount of BTC was last moved or acquired. A potential breakout above the short-term holders’ realized price would suggest new bullish momentum, as these holders would be back in profit and less likely to sell their holdings. Conversely, a break below the new holders’ cost basis support level could signal potential downside movement, as recent buyers might begin incurring losses and be forced to capitulate.

Each cost basis line highlighted in the analysis is calculated based on the realized price of Unspent Transaction Outputs (UTXOs) held within a specific age band. Similarly, realized price is determined by dividing the total value of all UTXOs by the number of coins.

Recent on-chain analysis suggests that BTC holders may be anticipating further upside. Short-term holders appear to be holding onto their BTC despite being in a loss position. Additionally, crypto exchange net flow data hints that a BTC price rally may be imminent. Some analysts are also drawing parallels to gold’s recent historic price action and predicting that ‘digital gold’ may soon experience similar momentum.

However, Bitcoin futures index sentiment is pointing toward rising pessimism surrounding BTC, driven by macroeconomic uncertainty. As of the latest update, BTC is trading at $88,759, up 1.7% in the last 24 hours.