Moreover, the LTH cost basis tends to act as the ultimate support level during bear markets, as most long-term investors are usually still in profit even in the thick of the bear market. Hence, when the Bitcoin price falls to this support, the long-term holders double down on their positions.
This renewed buying activity by the long-term holders would prop up the price of the premier cryptocurrency above their cost basis, as observed in the chart above. According to the highlighted data, the LTH cost basis is currently around $40,363, about 40% from the current price point.
If the Bitcoin price were to face further downside pressure and approach this cost basis, there is a likelihood it would receive support from the long-term investors’ increased reaccumulation. Hence, this cost basis could become the bottom for the current bear market.
Bitcoin Price OverviewAs of this writing, the price of BTC stands at around $68,330, reflecting a nearly 1% increase in the past 24 hours. However, this mild single-day action does little to correct the over 2% price decline witnessed by the premier cryptocurrency over the past week. According to data from CoinGecko, the Bitcoin price is currently down from its all-time high by more than 45%.
