The Bitcoin short-term holders are known for their reactive and speculative nature, as they are often triggered by sudden price movements. Hence, these investors tend to open and close their positions within a short period.
In his post on X, Kesmeci revealed three important levels based on the realized prices of investors within certain unspent transaction output (UTXO) age bands. Specifically, the on-chain analyst highlighted cost bases of investors within 1 week – 4 week ($106,200), 1 month – 3 month ($87,300), and 3 month – 6 month ($97,500) age bands.
According to Kesmeci, the Bitcoin price is likely to face significant resistance at around the $106,200 level, where 1-week – 4-week investors have their cost bases. The rationale behind this is that STH at a loss may close their positions when they return to their cost basis, leading to downward pressure and the formation of a resistance level.
In essence, this piece of on-chain data suggests that the Bitcoin price might be approaching a major resistance level just above $106,000. If it successfully breaches this level, investors might see the premier cryptocurrency revisit its all-time high of $111,871.
As of this writing, the price of BTC stands at around $105,700, reflecting a 1.3% increase in the past 24 hours. According to data from CoinGecko, the market leader is up by more than 1% in the last seven days.
