Bitcoin Supply Clusters Above $80,000 Pose Recovery Challenge
- The Bitcoin Cost Basis Distribution shows a dense supply cluster in the $80,000 to $126,000 range.
- Approximately 495,000 BTC are held at these high levels, representing significant unrealized losses for holders.
- Current price recovery is hindered as investors may sell near their break-even points.
The concentration of Bitcoin supply at high cost basis levels creates resistance to price recovery as holders look to sell at break-even points. This dynamic suggests that for a sustained recovery, these coins need to transition into new hands at lower cost bases.
As of now, Bitcoin’s price has seen some recovery from a recent low of $59,000 to around $63,200, but the overhang from high-level clusters remains a challenge for further gains. (Source)
