However, there has been a minor concern about Bitcoin’s price failing to breach $80,000 in its latest rally. Below is an on-chain perspective on why the market leader’s price action has slowed over the past few days.
Bitcoin Price Faces Significant Resistance At $80KFor context, the True Market Mean Price is a metric that estimates the average cost basis of active market participants. This on-chain indicator excludes dormant (or lost) coins and miner revenue, focusing on the real, circulating portion of the supply.
The True Market Mean Price distinguishes between traders and long-term dormant holders, providing a more precise average cost basis for active participants (who tend to have a greater impact on the price). Hence, it functions as a dynamic support and resistance level, due to its psychological relevance to traders.
Wedson added that even if the price of BTC breaks the True Market Mean, it would be best for investors to wait about 3 days for confirmation of a breakout. “Otherwise, the higher probability is that bears may gain some control over price in the coming days/week,” the Alphractal founder warned.
Crowd FOMO Crashes $80K Party For BTCThe analytics firm wrote on X:
Prices can continue to rally, and a breach above this resistance level would be massive in bringing in new and returning traders. However, it will ideally happen when optimism calms down just slightly.
As of this writing, the price of BTC stands at around $77,588, reflecting a mere 0.3% dip in the past 24 hours.
