Bitcoin prices have been struggling to shine over the weekend recently, and performance is not that different now. It showed a promising bullish sign on Friday evening, but the best cryptocurrencies appear to have returned to weekend wilderness.
Thanks to the late jump on Friday, BTC prices have returned to the mini-consolidation range of $97,000 to $98,000. Interestingly, the latest on-chain data shows that Bitcoin prices are trapped within key brackets.
Why investors should be aware of $96,365 and $98,467
In a post on the X platform, renowned crypto analyst Ali Martinez shared interesting on-chain insights into Bitcoin's price and its future trajectory. According to Martinez, the flagship cryptocurrency is sandwiched between two important price levels that can determine the trend in the short term.
This on-chain analysis is based on the average cost base of several BTC investors. In the context, cost-based analysis assesses the level of capacity that acts as support or resistance, depending on the total amount of coins that local investors have last purchased.
Source: Ali_charts/X
As observed in the chart above, the size of the dots (green and red) represents the number of bitcoins acquired within the price range and corresponds directly. According to data from IntotheBlock, around 1.97 million addresses purchased around 1.43 million BTC for $94,659 and $97,544 (average price of $96,365).
This high purchasing activity has created a key support cushion within this priced region. The reason is that once Bitcoin prices return to $96,365, cost-based investors at this level and surrounding area are likely to defend their positions by acquiring more coins, with prices exceeding the support area That means you can do it.
At the same time, the $97,650 and $99,470 region is also packed with investors. This price range could serve as a key supply barrier, as loss investors might want to offload their assets as soon as the price of Bitcoin reaches a cost base.
With prices set between these two levels, the best cryptocurrencies appear to be at a critical time in the coming weeks to determine the future. “Breakouts can set trends in either direction,” Martinez said.
Bitcoin price at a glance
At the time of writing, Bitcoin priced around $97,700, not reflecting any significant movements over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
