Bitcoin’s Potential Rebound May Face Resistance at $65K, OnChain Analysis Shows

Bitcoin’s potential rebound from its recent loss may face resistance at around $65,000, according to onchain analysis. Short-term holders, who bought Bitcoin over the past 155 days or less, may be in the red and could choose to liquidate their positions near the breakeven point of $65,000. On the other hand, long-term holders, whose average purchase cost is less than $20,000, are likely to hold onto their coins or even increase their holdings. The recent decline in Bitcoin’s price has pushed it below the aggregate cost basis of short-term holders, further adding to the potential selling pressure near $65,000. Analysts compare this situation to a similar scenario in August 2023 when Bitcoin traded sideways for two more months before resuming its upward trajectory. Additionally, long-term holders are accustomed to significant price pullbacks and perceive them as normal corrections within a bullish market rather than cause for concern.