How to determine crypto cost basis for accurate tax filings

Calculating the cost basis of cryptocurrency for tax purposes involves considering purchase prices, transaction fees and events such as hard forks or staking rewards.

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Bitcoin Loses Historical Level, Analyst Says Reclaim And Bounce, Or Die

An analyst has pointed out how Bitcoin recently closed below a historically important on-chain level, a failure to reclaim which could spell trouble for BTC. Bitcoin Fell Below Short-Term Holder Cost Basis In Latest Crash In a new post on X, Maartunn discussed BTCs recent close below the realized price of the short-term holders and [...]

The post Bitcoin Loses Historical Level, Analyst Says Reclaim And Bounce, Or Die appeared first on Crypto Breaking News.

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Heres Where Ethereums Last Line Of Defense Lies, According To On-Chain Data

On-chain data shows Ethereum has broken under all major investor cost basis levels, except for one. Here’s where this price level is currently situated. Ethereum Has Only Realized Price Of Mega Whales To Rely On Now In a CryptoQuant Quicktake post, analyst MAC_D has discussed about where the next major support level could lie for Ethereum. The line in question is a version of the Realized Price. The “Realized Price” is an on-chain indicator that, in short, keeps track of the average cost basis of investors belonging to a given ETH cohort. When this metric is under the spot price, it means the average member of the group is holding coins at a net loss. On the other hand, it being above the asset’s value suggests the cohort as a whole is in a state of net profit. Related Reading: Bitcoin Keeps ReboundingBut Is Momentum Really Turning Bullish? Investor cost basis is considered an important topic in on-chain analysis, as holders can be more likely to show some kind of move when their profit-loss status is challenged. Whether investors react by buying or selling can come down to which direction the retest of their acquisition level is occurring from. When it’s from above, holders may decide to accumulate more if the atmosphere is bullish, as they can consider the pullback to be just a ‘dip.’ This provides support to the asset, thus defending their cost basis. Similarly, investors who were underwater just prior to the retest might believe the surge wouldn’t last and they would fall back into losses again. So, they could make the decision to exit, to at least escape with their entire investment back. A cost basis level that has shown particular importance for not just Ethereum, but digital assets in general is the Realized Price of the entire network. As the chart shared by the quant shows, this level is currently situated around $2,250 for ETH. From the graph, it’s apparent that the line provided support to Ethereum last year, but it has failed recently as the coin’s price has significantly fallen under it. This means that the average holder on the blockchain is now sitting on a notable loss. With this major level gone, the Realized Price of the individual cohorts could help point to where the next support could be. Here is a chart displaying the trend in the indicator for investors holding between 100 to 1,000 ETH, 1,000 to 10,000 ETH, 10,000 to 100,000 ETH, and more than 100,000 ETH: As is visible in the graph, Ethereum has put three of the cohorts underwater with the latest crash. Now, only the largest of holders in the sector, those with over 100,000 ETH in their balance, are still in the green. Related Reading: Dogecoin To $0.57 Or $0.06? Analyst Says DOGEs Fate Hinges On This Level Back in the 2022 bear market, ETH found support at the Realized Price of these humongous whales. Thus, it’s possible that this line could once again be of relevance to ETH. At present, the cohort has its average acquisition level at $1,290, so it will take more bearish action before a retest can take place. ETH Price At the time of writing, Ethereum is trading around $1,500, down more than 16% in the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Ethereum (ETH) Consolidates Within Tight Range As Key Support Level Forms Details

Ethereum (ETH) prices have surged by over 3% in the past day in line with a bullish upswing across the broader crypto market. However, Ethereum on-chain data reveals the altcoin has stumbled in a range-bound market hinting at a potentially prolonged sideways movement. Related Reading: Bitcoin Long-Term Holders Show Conviction: 63% Of Supply Hasnt Moved In A Year Ethereum Trapped In $1,548 – $1,599 Range – Glassnode In a recent post on X, prominent blockchain analytics firm Glassnode reports that Ethereum is trading in a tight range between $1,548 and $1,599. This development is revealed by the asset’s cost basis distribution (CBD), which shows the various price levels at which current ETH holders bought their coins. CBD is an important on-chain metric used to identify potential support or resistance levels based on the accumulation levels seen at price zones. According to Glassnode, a combined 1.53 million ETH, valued at $2.4 billion, was acquired between $1,548 and $1,599 indicating a high level of investor interest at these price regions. In particular, 793,900 ETH currently in circulation was purchased at $1,548, ultimately transforming this price floor into a major support zone for the current Ethereum price. Meanwhile, 732,400 ETH is held by investors at $1,599 representing a significant price barrier to any upward price movement.  Interestingly, Ethereum has tested both price zones over the past day failing to produce either a price breakout or breakdown. Considering the accumulation level at both prices, the altcoin might maintain a range-bound movement barring the introduction of a market catalyst.  Interestingly, such price behavior would align with the broader market uncertainty amidst unstable macroeconomic factors and tightening liquidity conditions. Related Reading: XRP Price Flashes Symmetrical Triangle From 2017, A Repeat Could Send It as Flying To $30 Important Ethereum Support Forms At $1,461 In other developments, Glassnode also notes that Ethereum bulls are building a critical support zone at $1,461 at which 380,000 ETH, valued at $595.8 million have been acquired. In the case of any breakdown from the current consolidation zone, this price level is expected to act as the next major support preventing any further downside. However, a daily price close below $1,461 could cause ETH to trade as low as $1,400 or $1,200. At the time of writing, Ethereum trades at $1,562 reflecting a 3.35% gain in the past 24 hours. However, the ETH market remains in a deep corrective phase with 14.56% and 18.45% losses in the last seven and thirty days, respectively.  Meanwhile, the assets daily trading volume has declined by 34.06%, indicating a fall in market participation and a potential reversal of the recent rally, which would allow Ethereum to maintain a range-bound movement.   Featured image from Bankrate, chart from Tradingview

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Support Or Resistance? Chainlink (LINK) Investor Data Suggests Key Price Zones

Market prices of Chainlink (LINK) suffered another major decline in the past 24 hours as the general crypto market continued to react negatively to US new international tariffs. Over the last two months, LINK has exhibited a prolonged downtrend losing over 40% of its market value. Amidst this bearish market, popular analytics company Glassnode has highlighted two price cluster levels that have shaped investors’ behavior in this period. Related Reading: 640,000 Chainlink (LINK) Withdrawn From Exchanges In 24 Hours Bullish Accumulation? Chainlinks CBD Data Reveals Key Investor Clusters At $14.6 And $16 – What Could This Mean? In a recent post on X, Glassnode shared valuable on-chain insights on the LINK market using Cost Basis Distribution (CBD) – a metric that reveals at what prices investors acquired their assets, thus helping to determine potential resistance or support zones. According to Glassnode, LINKs data has identified two price levels with high accumulation activity i.e. $16 and $14.6, noting that both price zones feature long-term investors who have remained active since August-October 2024. In analyzing transactions at the $16 price level, Glassnode discovered that investors at this level have shown strategic repositioning by actively accumulating during downtrends. Source: @glassnode on XThis positive development has been observed during a price drop from $29 to $19 in December, a correction to around $18 in February, and most recently as prices reached a new low of $12.70 on March 11. Glassnode explains that these recurring transactions indicate the presence of high-conviction holders at $16.0 with strong long-term confidence in LINK and are thus less likely to sell their holdings. Conversely, LINK holders at $14.6 have shown a less active but more timely accumulation by investors at this price level. Glassnode shows that these investors increased their holdings during key phases such as when LINK traded at $17 and $28 in December, at $25 in January, and on March 15 following a major price gain from $12. These observations also suggest current LINK holders are not fast money allocators but patient and confident of a future price accumulation. Related Reading: Whale Grabs 506 Billion PEPEIs A Price Explosion Near? What Next For Chainlink? At press time, LINK trades at $14.0  just below the key cluster level at $14.6. The proximity to this accumulation zone indicates the market is at a critical juncture. However, Glassnode data suggests that holders at the $14.6 are not fast money traders and are likely to reinforce their position through another accumulation. If this positive scenario occurs, LINK could reclaim $14.6 and $16 which could serve as important support structures in a potential market rebound. Featured image from Token Metrics, chart from Tradingview

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Heres Where Support & Resistance Lies For Solana, Based On On-Chain Data

The analytics firm Glassnode has revealed the Solana price levels that could be important to watch, based on on-chain accumulation data. Solana Cost Basis Distribution Reveals Where Supply Is Most Concentrated In a new post on X, Glassnode has discussed about the UTXO Realized Price Distribution (URPD) of Solana. The URPD is an indicator that basically tells us about how much of the SOL supply was purchased at which price levels. Naturally, the metric uses the last transaction price of any token in circulation as its cost basis. Related Reading: Bitcoin Transfer Count Lowest Since 2023Is This Bearish? First, here is how the URPD looked when the cryptocurrency set its new all-time high (ATH) back in January: From the graph, it’s apparent that a few price levels like $144 stood out in terms of the amount of supply that they hosted. At the price levels closer to the new ATH, however, supply was quite thin, meaning not many coins changed hands there. In on-chain analysis, the potential of any level to act as support or resistance is measured in terms of the amount of supply that it hosts. This means that levels that have a large cluster around them on the URPD are the ones of importance to the asset. As for why this is so, the answer lies in investor psychology: holders are sensitive to retests of their cost basis. Whenever the price touches a large cost basis cluster, the investors who are holding these coins may respond by making some panic moves. These moves can tend toward buying if the retest is happening from above, as investors may want to defend their profit-loss boundary. In retests happening from below, however, the traders could react by selling instead, as they may seek to exit at their break-even. When SOL reached its ATH, there was a lack of support nearby. This may be why the asset ended up falling into the cluster that did carry a significant amount of supply. Below is a chart that shows how the URPD has changed following the price drawdown. From the graph, it’s visible that if SOL continues its downtrend, it may have to end up relying on the freshly grown $112 level. In January, this level hosted the cost basis of 4 million tokens, but today, the figure has grown to 9.7 million, equivalent to 1.67% of the entire supply. Beyond this level, Glassnode notes, “$94, $97, and $100 collectively hold nearly 21M SOL (3.5% of supply).” In the scenario that these support levels fail, Solana may find itself in trouble, as there aren’t any major supply clusters until $53. Related Reading: Dogecoin Shark & Whale Population RisesPrice Turnaround Incoming? In terms of the levels above, the $135 and $144 levels stand out, as they hold the acquisition level of 26.6 million and 27 million coins, respectively. These levels could act as major obstacles in SOL’s recovery. SOL Price Solana has jumped more than 5% over the last 24 hours to recover to the $130 level. Featured image from Shutterstock.com, Glassnode.com, chart from TradingView.com

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Chainlink Price Shows Signs Of Recovery Why $15 Is The Level To Watch

The Chainlink price has had its fair share of the early-2025 struggles, falling to a new low just above the $12 level earlier this week. The altcoin has had to contend with the widespread bearish pressure and worsening investor sentiment in the general crypto market. Chainlink Price Overview On Tuesday, March 11, the Chainlink price succumbed to the market-wide downward pressure that saw the largest cryptocurrency Bitcoin hit $77,000 for the first time in over four months. Other large-cap assets also suffered in this recent market downturn, with the price of Ethereum also dropping beneath $2,000. Related Reading: Dogecoin Recovery In Sight? Key Metrics Predict A Strong Bounce The price of Chainlink appears to be recovering well in the past few days, making a play for $15 on Friday, March 14. In a show of strong resurgence, the altcoin ranked as one of the best daily gainers with an almost 10% positive performance on the day. After initially crossing $14.5 earlier in the day, the Chainlink price has returned to below the psychological $14 level. As of this writing, the price of LINK stands at around $13.83, reflecting an almost 6% increase in the past 24 hours. This single-day performance, however, was not enough to wipe off the altcoins loss on the weekly timeframe. According to data from CoinGecko, the LINK price is down by more than 13% in the past seven days. Can LINK Price Climb To $16? While the fortunes of the Chainlink price do appear to be changing, a particular price level might be crucial to its long-term trajectory. In a post on X, popular crypto analyst Ali Martinez offered insights into crucial on-chain levels for the LINK price. This analysis revolves around the average cost basis of several LINK investors. In cost-basis analysis, the capacity of a level to serve as support or resistance depends on the total amount of coins last purchased by investors in the region.  As seen in the chart above, the size of the dot represents and directly corresponds to the number of LINK tokens acquired within a price bracket while reflecting the strength of each level. Based on this analysis, Martinez noted that the Chainlink price faces major resistance around the $14.88 – $15 region where 15,450 investors bought 107.28 million LINK tokens (worth $1.62 billion at an average price of $15.13). The high investor activity has led to the formation of a supply barrier around the $15.13 region. The Chainlink price is likely to witness significant selling pressure due to investors wanting to sell their tokens after returning to their cost basis, thereby hindering further price increases and leading to price pullback. However, it is worth noting that no significant resistance levels lie beyond this $15.13 price region. Hence, investors could see the price of LINK climb to as high as $16 should it successfully breach the $15 resistance level. Related Reading: Ethereum Could Be Mirroring Bitcoins 2018-2021 Cycle Amid Record Selling Featured image from Unsplash, chart from TradingView

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Bitcoin To $53,200? Why History Says Its Possible

As Bitcoin drops below $68,000, history suggests this correction is rather tame for bull markets, as plunges to this deep on-chain level have been the norm. Bitcoin Short-Term Holder Realized Price Is Currently Around $53,200 As pointed out by CryptoQuant Netherlands community manager Maartunn in a post on X, BTC still has a decent margin over the realized price of the short-term holders. The “realized price” is an on-chain metric that keeps track of the average price at which the Bitcoin investors acquired their coins. The indicator calculates this value by going through the transaction history of each coin and assuming that the last transfer of it was the last time it was purchased (that is, the price at the time is its current cost basis). Related Reading: Why Is Bitcoin Price Down Today? 3 Key Reasons When the spot value of the cryptocurrency dips below the realized price, it means that the average investor is now in a state of loss. On the other hand, a break above implies the market as a whole has entered into net profits. In the context of the current discussion, the realized price for only a particular segment of the investors is of interest: the “short-term holders” (STHs). The STHs include all the investors who bought their coins within the past 155 days. Now, here is a chart that shows the trend in the Bitcoin realized price specifically for this cohort: Looks like the value of the metric has been trending up recently | Source: @JA_Maartun on X As displayed in the above graph, the Bitcoin STH realized price has shot up recently as the price of the asset has gone up. This makes sense, as this group includes the most recent buyers, who would continuously be buying at higher prices in an uptrend, thus raising their average cost basis. At present, this cohort’s realized price is about $53,200. During the past day, BTC has seen a sharp drop that has taken its price below the $68,000 mark, but clearly, the STHs would still be in high profits even after this drawdown. “In previous bull markets, the average cost basis of short-term holders was fully reset multiple times,” explains Maartunn. This trend is most prominent in the data for the 2017 bull run when the price retested this level several times. An interesting pattern that has been held is that these retests of the level during bull trends have generally resulted in the cryptocurrency finding support and turning itself back around. The explanation for this trend may lie in the fickle nature of the STHs. The cost basis is an important level for these investors, and when a retest of it happens, they panic and show some reaction. Related Reading: Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase During uptrends, these holders are more likely to buy more when a retest of their cost basis occurs since they may think that the same price levels that were profitable earlier will be so again in the near future. Naturally, it’s not a certainty that Bitcoin would also end up retesting this level in this bull market. Still, a correction might reach close to it if the historical precedent is anything to go by. BTC Price Following its 7% drop in the past day, Bitcoin is trading at around $67,700. The price of the coin has registered a sharp drop over the last 24 hours | Source: BTCUSD on TradingView Featured image from Maxim Hopman on Unsplash.com, CryptoQuant.com, chart from TradingView.com

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Ethereum Key Support: Cost Basis Data Points To $1,890 As Make-Or-Break Level

In line with major losses across the crypto market, Ethereum (ETH) declined by 17.08% in the past week reaching as low as $2,104. While the prominent altcoin has shown some minor gains in the past 12 hours, the general market sentiment remains bearish. Related Reading: Ethereum Retraces To Critical Monthly Demand Level Can ETH Hold Selling Pressure? ETH Correction Likely Headed To $1,890 – Here’s Why The ETH market is currently navigating a strong market correction with several analysts now spotlighting potential key support levels. According to prominent on-chain analytics firm Glassnode, data from the Cost Basis Distribution (CBD) metric indicates Ethereum is poised for a decline to $1,890 which represents its next major accumulation zone. For context, CBD is used to identify significant levels of an asset’s accumulation or distribution. These identified zones often act as support or resistance and are influential on price actions.  Analysts at Glassnodes state that the major ETH accumulation zone below its current price is $1,890 at which investors acquired approximately 1.82 million ETH in August 2023. Interestingly, a two-year analysis of Ethereums CBD shows that some of these investors who accumulated ETH in August 2023 remain active. Notably, a significant number of them increased their cost basis during the crypto market in November 2024 while executing no distribution at range highs – a behavior that signals a strong confidence in long-term price appreciation.  However, it is worth stating that $1,890 is not the immediate support zone for the ETH market. Glassnode states that CBD data also highlights $2,100 as the next support zone if Ethereum’s correction continues. This support level only holds around 500,000 ETH i.e. significantly lower than the accumulation seen at $1890. Albeit, investors can expect $2,100 to offer some short-term support before ETH experiences a deeper correction to $,1890. Related Reading: Is The Worst Yet To Come For XRP? Analyst Issues Dire Warning Is ETH Accumulation On Amid Price Dip? In a further analysis of the Ethereum market, Glassnode also reveals that a six-month perspective on the cost basis trend shows strong investor activity with at cost basis levels far higher than the current market price, particularly around $3,500. Notably, this cost basis has shown a gradual decline while increasing in concentration. This development indicates that rather than initiating a sell-off, investors are actively absorbing market supply as prices decline in anticipation of long-term gains. At the time of writing, Ethereum trades at $2,250 following a 3.84% gain in the past day. Meanwhile, its heavy decline over the past week moves its monthly losses to around 30.48%. However, its market activity has increased by 7.74% and is now valued at $29.91 billion. Featured image from iStock, chart from Tradingview

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Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

Bitcoin on-chain data suggests a historical support line may have helped the coin once again as the asset has recovered toward $28,000 today. Bitcoin Short-Term Holder Cost Basis May Still Be Active As Support According to data from the on-chain analytics firm Glassnode, the BTC price approached the cost basis of the short-term holders recently. The relevant indicator here is the “realized price,” which is a metric derived from the “realized cap.” The realized cap refers to a capitalization model for Bitcoin that says that the value of each coin in the circulating supply is not the current spot price, but the price at which it was last transacted on the blockchain. In this way, the model accounts for the price at which each investor acquired their coins. That is, their “cost basis.” When the realized cap is divided by the number of coins in circulation (to find a sort of average value), the aforementioned realized price emerges. Related Reading: Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting? This realized price signifies the average value at which each holder in the market bought their coins. The metric can also be defined for only partial segments of the market, like the “short-term holders” (STHs), in which case, the indicator will tell us about the average cost basis among this group only. The STHs are all those investors who bought their coins less than 155 days ago. The BTC holders outside this group are termed the “long-term holders” (LTHs). Now, here is a chart that shows the trend in the Bitcoin realized price for the STHs over the past couple of years: The value of the metric seems to have been climbing in recent days | Source: Glassnode on Twitter In the above graph, Glassnode has marked the various instances where the Bitcoin STH realized price has apparently interacted with the spot price of the asset. Back when the 2021 bull run topped out in November, the cryptocurrency’s value dropped below this indicator, signaling a change of trend. From this point on, as the bear market took over, the STH cost basis started providing resistance to the asset. Back in January of this year, though, the price finally managed to break through this resistance as the rally began to take place. Related Reading: Bitcoin Bulls Push BTC Back Up To $28K Amid Surging Address Activity This break lead to another change in the wider trend, as the line seemingly turned into support for the asset. However, this isn’t an unusual pattern, as bullish periods have historically observed the metric helping the price. Recently, Bitcoin found some struggle, as the price plunged towards the $26,000 level. The consolidation near this level meant that the price was fast approaching the STH realized price, which was slowly going up. When Glassnode posted the chart yesterday, it described this current state as a “decision point” for the market. According to the analytics firm, a successful retest here would be a sign of strength in the bullish trend, while failure would imply weakness. Over the past day, Bitcoin has enjoyed a rebound, with the price briefly breaking above the $28,000 level. But it may perhaps not be a coincidence that the uplift has come right as the price was nearing a retest of this historical level. Naturally, a sustained move away from the STH realized price now would confirm that the level is still active as support, a sign that would be positive for the rally’s sustainability. BTC Price At the time of writing, Bitcoin is trading around $27,900, up 4% in the last week. BTC has surged in the past day | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Glassnode.com

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The Bear Market Correction Could Be Over, According To ARK. Reasoning Inside

Rejoice! The bear market might be over. That’s the main thesis behind July’s “The Bitcoin Monthly” report. “Because bitcoin’s price did not rise parabolically during the 2021 bull market, its bear market correction could be over,” ARK reasons. And it makes sense, the numbers seem to suggest it, and it feels like it. However, are we fooling ourselves? Is ARK’s reasoning wishful thinking? Let’s examine the data and see what it tells us. First of all, “bitcoin closed the month of July up 16.6%, rising from $19,965 to $23,325, its most significant gain since October 2021.” So far, so good. Can we declare that the bear market correction is over, though? Well, “the likelihood of touching its delta cost basis has diminished, bitcoin’s downside risk in a bear market technically stands at its delta cost basis, currently $13,890.” This number seems far away. Maybe bitcoin is slowly getting out of its slum.  “Bitcoin has corrected 72% relative to its alltime high. Although this drawdown is consistent with intracyclical corrections, like the COVID collapse in 2020, bitcoin usually finds global cyclical bottoms with a correction greater than 80%.” That doesn’t sound as promising. Maybe there’s more pain ahead, however… “Given the positive correlation between bitcoin and US equities since COVID, the US being the leading price mover of bitcoin suggests an emerging risk-on market environment,” ARK claims. Apparently, the US has been leading the bulls lately. Perfect. Bitcoin needs all the help it can get in these trying times. Are We Leaving The Bear Market? Let’s Look At The Signs “Contagion in the crypto markets appears to be contained, as Celsius and Three Arrows Capital officially file for bankruptcy.” Announcing the Celsius news, NewsBTC said “After weeks of conjecture and hearsay, Celsius’s legal counsels have formally informed regulators that the cryptocurrency lender has filed for Chapter 11 bankruptcy protection.” Announcing the 3AC one, we said, “Crypto hedge fund 3 Arrows Capital is slated to be another pillar piece of 2022’s bear market headlines, joining the likes of brutal bear market moments that include Terra Luna’s downfall and CeFi’s drama.” “Leverage appears to be unwinding across the crypto ecosystem, paving a path to recovery” That’s phenomenal. May this continue to happen. “After trading below its investor cost basis for the first time since March 2020, bitcoin has reclaimed major support levels and is trading above its market cost basis.” Great news. Is this real, then? Are we getting out of the bear market this fast? BTC price chart for 08/09/2022 on Kraken | Source: BTC/USD on TradingView.com Other Factors, Miners And Lightning “Despite continued miner pressure, bitcoin’s economics are at equilibrium.” Ok, some miners sold and others turned down their machines. However, the pressure seems to be subsiding and the sun seems to be shining.  “Bitcoin’s scaling solutions appear to be gaining momentum, as capacity on the Lightning Network reaches an all-time high.” The Lightning Network went head to head with the bear market and didn’t even flinch. People are building and the L2 solution is bigger and better than ever. “LN capacity growth seems to accelerate during bear markets, marking a shift in sentiment from exuberance and speculation to testing and building longterm solutions for bitcoin.” “Given continued declines in economic activity, including employment, the Federal Reserve could pivot during the second half of the year.” Is the US in the middle of a recession? Opinions vary, but the results are the same. People all over the world are struggling. “The drop was attributable largely to a decrease in inventories, residential and non-residential investments, and government spending. Strong recession signals could compel the Fed to change its hawkish stance,” ARK states.  “The 10-year Treasury bond yield has been unable to sustain a move above 3% and is now falling, posing less competition to cryptoassets.” Government bonds were the safest investment for years and years. Nowadays, they’re not the new kid on the block anymore. Bitcoin is the new kid on the block. This bear market might not have been more than “brief deviation.” We might be back in business after all. Featured Image by Alexa from Pixabay | Charts by TradingView

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Can Bitcoin Hold $97K? 1-3 Month Holders Data Reveals Crucial BTC Demand

Bitcoin has experienced a quiet weekend, with the price remaining stagnant around the $96,500 level for five consecutive days. This prolonged period of consolidation highlights the current indecisive nature of the market. Bulls have been unable to reclaim control and push Bitcoin above the critical $100K mark, while bears are also struggling to drive the price lower toward key demand levels. Related Reading: Ethereum Holds Multi-Year Bullish Pattern Expert Suggests The Next Move Will Be The Real Deal The lack of direction has left investors and analysts watching closely for signals of the next major move. The broader market sentiment remains cautious, with many questioning whether Bitcoin can regain bullish momentum or if a deeper correction is on the horizon. Key metrics shared by crypto expert Axel Adler on X provide some insight into the current dynamics. According to Adler, the $97K level serves as a strong support zone, representing the average purchase price for Bitcoin short-term holders. This suggests that a significant portion of market participants are still confident in Bitcoins ability to hold above this level despite the lack of upward momentum. Bitcoin Demand Remains Strong As Indecision Drives The market  Bitcoin has been navigating through weeks, even months, of uncertainty and speculation, leaving investors divided about its short-term direction. Bulls have struggled to push the price back above the critical $100K mark, while bears have been unable to break below key support levels. This stalemate has created a market characterized by indecision, with volatility continuing to dominate price action. The absence of a clear trend has caused frustration among investors, many of whom had anticipated a stronger rally earlier this year. Instead, Bitcoin has been consolidating within a range, bouncing between its $109K all-time high and support levels around $90K. For now, the market seems stuck in this phase, with no immediate catalyst to break out. Top analyst Axel Adler has provided crucial insights into the current dynamics. According to Adler, the $97K level is acting as strong support, as it represents the average purchase price for short-term holders who have held their Bitcoin for one to three months. This data suggests that many market participants are still confident in Bitcoin’s ability to hold this level, even as broader uncertainty looms. If Bitcoin can sustain this support in the coming days, analysts anticipate a potential rally back toward range highs around $109K. However, failure to maintain this level could pave the way for further downside, testing lower demand zones. For now, the market remains on edge, waiting for Bitcoin’s next decisive move. Related Reading: Cardano Is Showing Signs Of A Potential Rebound As Key Indicator Flashes A Buy Signal Analyst BTC Price Action Details: Key Levels Bitcoin is currently trading at $98,000 after spending the past week in a tight range between the $100K psychological resistance and the $94,500 low. This range-bound price action highlights indecision in the market, as bulls and bears struggle to gain control. For Bitcoin to confirm a short-term reversal and regain bullish momentum, bulls need to reclaim the $98K mark as support and push decisively above the $100K level. Breaking and holding above this critical resistance could set the stage for a move toward higher price levels, potentially targeting all-time highs around $109K. A successful reclaim of the $100K level would signal renewed strength and confidence in the market, sparking optimism among investors. On the flip side, failure to hold above the $95K support level could open the door for further downside. A drop below $95K might send Bitcoin into lower demand zones, with the $90K level acting as the next key support. Such a move could further fuel bearish sentiment and extend the current consolidation phase. Related Reading: Ethereum Stuck Below $2,800 Resistance Bulls Need A Higher Low To Recover As the market continues to consolidate, investors are closely monitoring these levels for clues about Bitcoin’s next move. With both bulls and bears testing their limits, the coming days will likely determine the short-term direction of BTCs price. Featured image from Dall-E, chart from TradingView

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Long-term Bitcoin holder supply posts new ATH, undeterred by price

On July 30, the amount of Bitcoin held by long-term holders reached an all-time high. According to data from blockchain analytics firm Glassnode, long-term holders now possess 14.55 million BTC, marking a new record in Bitcoin’s history. Long-term holders (LTHs) are defined as addresses that have held onto their Bitcoin for over 155 days playing […]

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