The Bitcoin price has almost struggled to shine lately on weekends, with its performance so far in the current one not much different. While it showed promising bullish signs on Friday evening, the premier cryptocurrency seems to have returned to its dour weekend nature.
Thanks to the jump in the late hours of Friday, the price of BTC moved back into a mini-consolidation range between $97,000 and $98,000. Interestingly, the latest on-chain data shows that Bitcoin price is now trapped within a crucial bracket.
Why Investors Watch Out For $96,365 And $98,467
In a post on the X platform, prominent crypto analyst Ali Martinez shared an interesting on-chain insight into the Bitcoin price and its future trajectory. According to Martinez, the flagship cryptocurrency is wedged between two key price levels that could determine its trend in the near term.
This on-chain analysis is based on the average cost basis of several BTC investors. For context, cost-basis analysis evaluates a level’s capacity to serve as support or resistance depending on the total amount of coins last purchased by investors in the region.
Source: Ali_charts/X
As observed in the chart above, the size of the dot (green and red) represents and directly corresponds to the number of bitcoins acquired within a price range. According to data from IntoTheBlock, around 1.97 million addresses bought roughly 1.43 million BTC within the price range of $94,659 and $97,544 (at an average price of $96,365.)
This high buying activity has led to the formation of a key support cushion within this price region. The reasoning is that, when Bitcoin price returns to $96,365, investors with their cost basis in and around this level are likely to defend their position by acquiring more coins, allowing the price to stay above the support area.
At the same time, the $97,650 and $99,470 region is also filled with investors — about $1.16 million addresses who bought over 1.16 million BTC. This price range could act as a significant supply barrier, as investors in loss may want to quickly offload their assets once the Bitcoin price reaches their cost basis.
With prices set between these two levels, the premier cryptocurrency appears to be at a critical juncture that could decide its future over the next few weeks. Martinez noted that “a breakout in either direction could set the trend.”
Bitcoin Price At A Glance
As of this writing, the price of Bitcoin stands at around $97,700, reflecting no significant movement in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
