Bitcoin Short-Term Holder Basis Remains High Within Biggest Supply Cluster

On-chain analysis by crypto analyst Sherlockwhale identifies the $84,000 to $88,000 zone as arguably the largest supply cluster in Bitcoin’s current market structure, a region stacked with breakeven sellers and one where the short-term holder cost basis is sitting overhead. 

As shown in the chart below, the BTC price is currently trading at $80,662 on the weekly timeframe, just below a thick gray resistance band stretching roughly from $84,000 to $86,000. Above that is the short-term holder cost basis of around $86,900 to $88,000 that creates another layer of overhead pressure. Together, these levels form one of the biggest supply clusters on the chart.

The technical analysis presents two possible paths for Bitcoin from the current price. The first path is a direct push into the $84,000 to $86,000 supply area, followed by a rejection and a pullback to support around $70,000. This would fit the analyst’s concern that Bitcoin is moving into an area where trapped buyers may sell into strength.