Bitcoin’s price performance has been quite disappointing over the past month. The flagship cryptocurrency struggled to sustainably rise above $70,000 throughout February, with prices only reaching $71,000 before facing sharp reversals.
It then becomes intuitively obvious that this price region could be a key level acting as resistance to Bitcoin’s bullish attempts. Below are some other crucial levels to watch in March and what they could potentially mean for the price of Bitcoin.
BTC realized price sits at $54,600 – what that means
In a Quicktake article on the CryptoQuant platform, market analyst Burak Kesmeci highlighted five “cost groups” that could reveal the next move in Bitcoin’s price. For context, cost clusters are essentially price levels that represent the average acquisition price of an asset (Bitcoin, in this case) by different cohorts of investors.
To begin, Kesmeci immediately revealed that Bitcoin’s safest support price – the realized price – was around $54,600. The realized price constitutes a strong support region as it reflects the average cost base of all BTC in circulation.
Source: CryptoQuant
Additionally, realized prices have historically served as long-term price support during downturns. As a result, when the Bitcoin price trades above this level, it is often a sign of existing structural strength, while a break below the realized price is usually a sign of impending doom.
Bitcoin could turn bullish in March – but on this condition
Although Bitcoin price may show its higher time support, it is also true that the world’s leading cryptocurrency has a series of battles to fight as it continues its rise. According to the crypto expert, four resistance zones are waiting to reject a possible upward recovery.
The first of these areas is the 1-4 week realized price, which reveals the average price at which recent buyers entered the BTC market. According to highlighted CryptoQuant data, this cost base is around $71,600.
When the Bitcoin price trades below this level, it indicates that late participants are under heavy heat. Therefore, attempts to recover towards this price level would generally be met with significant resistance, as this cohort would want to exit at break-even.
The analyst further highlighted that the price realized by the short-term holder (STH RP) is around $90,800; this concerns investors who have held BTC for less than 155 days. If Bitcoin price manages to overcome the obvious resistance at this level, it could signal a change in Bitcoin’s trend from bearish to bullish.
Beyond the STH RP, the 365-day simple moving average stands at the $98,900 price level; then, a little further north, the price realized over 3 to 6 months is around $100,800. These metrics reflect medium-term Bitcoin holder activity, showing their realized price and average closing prices over the past year.
Overall, Bitcoin is clearly in a bearish phase. So, before March can become the pivotal month for market participants, BTC needs to overcome these critical resistance levels. At the time of writing, Bitcoin is valued at around $63,696, reflecting a decline of over 5% in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
