Key Takeaways
Why is the $108k level a key support?
This level represented the average cost basis of the 3-6 month Bitcoin holder cohort, making it a strong support level.
Why could a Bitcoin recovery be difficult?
The $116k-$117.5k area was a supply zone on the price charts and the liquidation heatmap, and the CBD chart showed holders at a loss might sell at break-even during a price bounce.
Bitcoin [BTC] saw a surge in spot trading volume after the liquidation event on the 10th of October.
AMBCrypto reported that the Binance spot volume for Bitcoin has stabilized between $5-10 billion daily. Previously, the spot volume had ranged between $3 billion and $5 billion.
A larger number of BTC whale deposits were spotted, which could delay any potential price recovery. The poor price performance in October did not deter Strategy [MSTR] from buying Bitcoin for $18.8 million.
Source: CryptoQuant
The UTXO realized price age bands can help identify the behavior of different investor groups.
It plots the average cost basis (realized price) for each specific age band, which refers to when the particular cohort of holders entered the market.
An examination of the UTXO realized price metric showed that Bitcoin was trading
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Author: Akashnath S
