Bitcoin’s Potential Recovery Could Encounter Obstacles at $65,000, OnChain Analysis Reveals

Bitcoin is facing challenges as it aims to bounce back from recent losses, with data indicating potential resistance around $65,000. The leading cryptocurrency traded slightly higher at $63,200, seeking to recover after a 7% decline in June. This drop was attributed to miner selling and concerns that ETF inflows were more about arbitrage bets than bullish sentiment.

Short-term holders are experiencing losses as prices dip below their average cost basis of $65,000, leading them to consider selling near breakeven levels. Analysts at Blockware Intelligence noted that this situation could create resistance around $65,000 as speculators aim to exit their positions.

On the other hand, long-term holders, with an average cost of under $20,000, are encouraged to hold or increase their coin holdings. This represents a significant difference compared to the current market price of Bitcoin.

Despite Bitcoin’s 15% pullback from its peak above $73,500 in March, long-term holders view this as a typical correction in a bullish market. Blockware highlighted that during the 2017 cycle, Bitcoin experienced multiple drawdowns of 20% or more, emphasizing that such fluctuations are part of a healthy market cycle.

In conclusion, the short-term holders are facing challenges as prices hover near $65,000, potentially leading to further selling pressure. Long-term holders, on the other hand, remain steadfast in their positions, benefiting from a significantly lower average cost basis. This contrast in strategies between short-term and long-term holders underscores the diverse perspectives within the crypto market.