Bitcoin would need to break above a crucial resistance level for short-term holders to take profit and bring in new funds to the market.
Bitcoin has struggled to break above the $66,000 to $64,000 resistance in a while. The asset last traded above this region in early June.
Notably, the region presents more than just a resistance level for Bitcoin, as data from CryptoQuant recently disclosed that it represents a break-even point for short-term holders. Notably, these short-term holders are investors who have held Bitcoin for 155 days or less.
The data shows that those who have held Bitcoin for one to three months bought at an average cost basis of $64,206, while investors who have held the asset between three and six months have an average basis price of $65,898.
Break Above $66k Crucial
According to CryptoQuant, new investors may not enter the market because these short-term investors have not sold at a loss or closed their trade in profit. Hence, either of these needs to happen before new inflows are seen in the market.
The analytical firm noted that the success stories of these short-term Bitcoin holders could be all the market needs to see buying pressure and, consequently, higher prices. Bitcoin is currently trading at $60,880, 7.7% away from these key resistance regions.
Meanwhile, an earlier report from The Crypto Basic showed that Bitcoin might not reach that region this week as selling pressure has continued to keep the asset in check. According to the report, selling orders across exchanges outweighed buying orders by a staggering $50 million.
Bitcoin Sees Fresh Funds from ETFs
While Bitcoin seeks to find its footing, inflows from US exchange-traded funds (ETFs) have continued. Data from Sosovalue shows the products saw a net inflow of $39.42 million on Wednesday, taking their cumulative net inflows to $17.56 billion.
The US Bitcoin ETFs are on a five-day net inflow streak, with the last single-day outflow coming on August 14. Since the funds’ previous outflow, they have raked in $236.58 million.
Although inflows into the funds have not reached the level seen in March, they have continued to bring substantial liquidity into Bitcoin and the crypto market. The products hold a net asset of $55.96 billion, accounting for 4.63% of Bitcoin’s market cap.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Source: https://thecryptobasic.com/2024/08/22/heres-why-the-66k-to-64k-bitcoin-range-is-important-for-the-next-big-move/?utm_source=rss&utm_medium=rss&utm_campaign=heres-why-the-66k-to-64k-bitcoin-range-is-important-for-the-next-big-move