13 October 2024
The Bitcoin price has been relatively quiet in October, but things seem to be looking up after the premier cryptocurrency broke the $63,000 mark on Saturday, October 12. However, the crypto has to scale a major resistance level if the current bull run is to get back on track.
$64,000 The Resistance Level To Watch: Analyst
In a Quicktake post on CryptoQuant, an analyst with the pseudonym ShayanBTC has put forward an interesting prognosis for the Bitcoin price in the short term. According to the crypto expert, $64,000 and $55,000 are two crucial levels that every BTC investor should watch over the coming days.
This analysis is based on the Realized Price Unspent Transaction Output (UTXO) age bands. This on-chain metric is relevant for assessing Bitcoin market behavior, as it measures the holding pattern of different investor groups through a set of different realized prices.
The UTXO age bands metric highlights the average price at which Bitcoin holders acquired their coins while considering how long they’ve held the assets. The most notable age bands in this metric are the 3-month to 6-month (short-term) cohort and the 6-month to 12-month (long-term) cohort.
ShayanBTC highlighted in their post that the realized prices of Bitcoin holders in the short-term and long-term cohorts have served as critical support or resistance levels in the past. Historically, when the Bitcoin price struggles to breach the average purchase price of these cohorts, it implies a bearish trend for the flagship cryptocurrency.
ShayanBTC added:
Conversely, if Bitcoin can break above this realized price, it suggests growing bullish momentum, as new buyers are willing to hold even at higher levels.
According to data from CryptoQuant, the Bitcoin price is currently hovering between the realized prices of these two cohorts. As of this writing, the realized price for short-term holders stands at $64,000, while the realized price for long-term holders stands at around $55,000.
As it stands, the price of Bitcoin seems set to test the resistance level and 3-6 month holders’ realized price of $64,000. ShayanBTC noted that a successful breakthrough above this price level could indicate further bullish momentum and potential resumption of the bullish trend.
On the flip side, if the Bitcoin price fails to breach this $64,000 level, it could signal fresh selling pressure from short-term holders. Ultimately, this could lead to a deep correction toward the $55,000 level.
Bitcoin Price At A Glance
As of this writing, Bitcoin is valued at $63,249, reflecting a mere 1.1% increase in the past day. According to data from CoinGecko, the flagship cryptocurrency is up by more than 2% in the last seven days.