Bitcoin May Face Stiff Resistance Near $48.5K, On-Chain Analysis Shows
Bitcoin, the world’s largest and most iconic cryptocurrency, is facing a potential roadblock as it nears the $48,500 mark. On-chain analysis has revealed that nearly 270,000 BTC, valued at an average cost of $48,491, have been acquired by investors. This accumulation has led to speculation that some holders may choose to liquidate their holdings, as they break even on their investment.
Data shows that these 270,000 BTC are spread across more than 800,000 crypto addresses, indicating a wide distribution among investors. The average acquisition cost suggests that a significant number of holders will be tempted to sell their bitcoin once it reaches the $48,491 price point. This could potentially slow down the current bullish momentum in the short term.
Despite this potential resistance, Bitcoin has experienced an impressive recovery in recent weeks. From its low point of $38,500, the cryptocurrency has surged to $48,000, demonstrating a near-90-degree upward trajectory. This rally has coincided with substantial inflows into spot BTC exchange-traded funds, as well as a record-breaking surge in stocks.
Many analysts remain optimistic about Bitcoin’s future prospects. They predict that the cryptocurrency will continue its upward climb and potentially surpass $52,000 in the coming weeks. Furthermore, some experts anticipate that Bitcoin could rally well above $100,000 by the end of the year.
However, the potential resistance near $48,500 is a concern for investors. The breakout above this level may be met with a wave of selling from those looking to recoup their initial investment. This could possibly halt the current bullish momentum and introduce a period of consolidation.
In conclusion, Bitcoin is on the brink of a significant milestone, but it may face hurdles on its journey. The accumulation of BTC at an average acquisition cost of $48,491 suggests that some holders may choose to liquidate their positions once the cryptocurrency reaches this price. This potential resistance could pose a temporary setback to the bullish momentum that Bitcoin has recently exhibited. Nevertheless, experts remain confident in the long-term prospects of Bitcoin, and anticipate significant growth in the coming months.
Analyst comment
Neutral news.
As an analyst, the market may experience a temporary slowdown as Bitcoin faces potential resistance near $48,500. The accumulation of BTC at this price level may lead to some holders liquidating their positions, potentially slowing down current bullish momentum. However, experts remain optimistic about Bitcoin’s long-term prospects and anticipate significant growth in the coming months.
