The Bitcoin price has continued to impress over this weekend, recovering strongly from the late week blues that saw it fall toward $101,000. From a broader perspective, BTC will be targeting the $110,000 mark and looking to reclaim its all-time-high price. With the premier cryptocurrency already closing in on the $106,000 level, the question is — where is the next obstacle in this recovery journey?
BTC Price Faces Significant Resistance Above $106K
In a new post on the social media platform X, on-chain analyst Burak Kesmeci revealed two major levels that could be critical to the mid- to long-term trajectory of the Bitcoin price. This analysis is based on the realized price of a specific class of investors known as short-term holders (STH).
The Bitcoin short-term holders are known for their reactive and speculative nature, as they are often triggered by sudden price movements. Hence, these investors tend to open and close their positions within a short period.
In his post on X, Kesmeci revealed three important levels based on the realized prices of investors within certain unspent transaction output (UTXO) age bands. Specifically, the on-chain analyst highlighted cost bases of investors within 1 week – 4 week ($106,200), 1 month – 3 month ($87,300), and 3 month – 6 month ($97,500) age bands.
Source: @burak_kesmeci on X
According to Kesmeci, the Bitcoin price is likely to face significant resistance at around the $106,200 level, where 1-week – 4-week investors have their cost bases. The rationale behind this is that STH at a loss may close their positions when they return to their cost basis, leading to downward pressure and the formation of a resistance level.
On the flip side, Kesmeci also highlighted the realized price ($97,500) of short-term investors within the 3-month – 6-month age band as another critical level for the Bitcoin price. The analyst mentioned investors within this class may consider a move towards this realized price as an opportunity to defend their positions, leading to the formation of a support cushion.
In essence, this piece of on-chain data suggests that the Bitcoin price might be approaching a major resistance level just above $106,000. If it successfully breaches this level, investors might see the premier cryptocurrency revisit its all-time high of $111,871.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $105,700, reflecting a 1.3% increase in the past 24 hours. According to data from CoinGecko, the market leader is up by more than 1% in the last seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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