On-chain data shows Bitcoin has been trading inside a major cost-basis cluster recently, and the latest rally hasn’t taken it past the range either.
Bitcoin URPD Shows Significant Supply Has Cost Basis Near Current LevelsBelow is the chart shared by Martinez that shows how the URPD of Bitcoin is looking right now.
As is visible in the graph, there are some levels near to the current spot price with a notable amount of supply last purchased according to the URPD. Naturally, the investors holding coins with a cost basis at one of these levels below the latest price would be in some profit right now, while those above would be underwater.
Generally, investors who are in loss tend to react to a retest of their cost basis by selling, as they may fear going back underwater. Profitable hands, on the other hand, may accumulate more at their cost basis to defend it.
Referring to the cluster between $63,100 and $73,200, the analyst noted:
This is where millions of holders “voted” on the price. As long as we trade within this range, these investors are psychologically incentivized to defend their buy-in.
Beyond the range, supply is relatively thin on the URPD until $82,000. While this means that Bitcoin won’t find much support at those levels, it also implies that resistance from investors exiting at their cost basis could also be relatively low. Though, it only remains to be seen how price action will unfold in the coming days and whether the cryptocurrency will venture past the range.
After the latest price recovery, Ethereum is floating above both of these levels. “If the price drops below these levels, millions of holders at $1,584, $1,238, and $1,089 will likely defend their original “buy-in” price, creating a new floor,” explained the analyst.
BTC PriceBitcoin has seen its recovery stall since Tuesday as its price is still trading around $72,400.
