Bitcoin Surges 4.06% This Week, Eyes New All-Time High

Bitcoin has been on a slow but steady recovery path following last week's market sell-off, which saw the cryptocurrency drop back to the $100,000 price level. Market participants are closely monitoring the situation, identifying key factors that could propel Bitcoin past its previous all-time high of $111,970.
According to an on-chain analysis by Glassnode, Bitcoin has the potential to surpass its previous all-time high and reach unprecedented price levels if the market enters a phase of price discovery. This process is influenced by various factors, including supply and demand, liquidity, and market sentiment.
Glassnode's analysis highlights the importance of a key support level for Bitcoin to maintain its bullish momentum. The Short-term holder cost basis, which represents the average acquisition price of Bitcoin by investors who have held the asset for 115 days or less, serves as this crucial support level. According to the report, "The $97.6k Short-Term Holder cost basis continues to serve as a pivotal support level necessary for maintaining local bullish momentum."
If Bitcoin can break through the nearest resistance level, bulls are poised to challenge a new all-time high. The report identifies the $115.4k zone as the first significant resistance level that the market would need to overcome to enter a phase of price discovery.
After failing to sustain momentum above the $101,000 price level last week, Bitcoin bulls have made a notable comeback. Recovery gains this week have pushed the asset to $110,300. With Bitcoin trading at $108,729 and 7-day gains surging by 4.06%, renewed interest in the asset suggests that investment confidence has been bolstered for the near term.

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