Bitcoin Resistance Limited Beyond $100,000, On-Chain Data Suggests

According to on-chain data, Bitcoin may face low resistance at $100,000 and beyond due to investor cost basis distribution. A new post by institutional DeFi solutions provider Sentora analyzed Bitcoin price ranges in terms of investor cost basis as it approaches $100,000. The data shows that most large dots, representing the amount of Bitcoin supply purchased at certain price ranges, are now in the green. The ranges ahead, where underwater holders have their cost basis, have only small dots associated with them. Less than 3% of the cryptocurrency's supply has its cost basis at these levels above the spot price. Investors may react to a retest of their cost basis by selling or buying, but this behavior is only consequential when many investors share the same cost basis. Bitcoin has no major resistance levels ahead in terms of supply distribution, implying an exploration beyond $100,000 may not be hindered by break-even sellers. However, profit-selling could become a threat to the rally as the majority of the Bitcoin supply is now in the green. It remains to be seen whether incoming demand can counter potential selling pressure. At the time of writing, Bitcoin is around $99,400, up over 3% in the last week.