Bitcoin Could Hit New ATHs with Breakthrough of On-Chain Resistance, Analyst Suggests

An analyst recently shared insights on how Bitcoin could potentially reach new all-time highs if if it manages to break through a crucial on-chain resistance level. The analysis indicates that the $66,250 mark is a significant level, representing the cost basis of over 2% of all Bitcoin UTXOs.

In on-chain analysis, the strength of support nad resistance levels is determined by the total amount of cryptocurrency last acquired at each level. The data from Glassnode’s UTXO Realized Price Distribution (URPD) metric highlights the supply distribution across various price levels based on where investors originally bought their coins.

The $66,250 level appears to be a major hurdle for Bitcoin to overcome, as it represents a key point where a substantial number of coins were purchased. Investors typically pay close attention to their cost basis levels, and a retest of this level could trigger reactions in the market. IF many holders bought there coins at this level, a retest could lead to visible effects on the cryptocurrency’s price.

However, beyond the $66,250 resistance level, the analyst points out that subsequent levels are relatively thin. Breaking past this significant barrier could pave the way for Bitcoin to surge to new all-time highs. The market intelligence platform IntoTheBlock also highlighted the distribution of on-chain cost basis, revealing that around 10% of all addresses acquired their coins between the current spot price and the previous all-time high set in March.

With Bitcoin currently trading around $61,900, investors are closely monitoring its movements in anticipation of a potential breakout. The analysis suggests that overcoming the $66,250 resistance level could be a game-changer for Bitcoin, setting it up for a bullish trajectory towards new record levels.

As the market dynamics evolve and on-chain data continues to provide valuable insights, investors remain optimistic about Bitcoin’s potential to achieve significant milestones in the near future.