Over the past month, Bitcoin’s price performance has been very disappointing. The flagship cryptocurrency struggled to sustainably break above $70,000 throughout February, and the price faced a sharp reversal when it reached $71,000.
Therefore, it becomes intuitively clear that this price range could be a key level that acts as a resistance to Bitcoin’s bullish attempts. Below are other important levels to watch in March and what they could mean for Bitcoin price.
BTC Realized Price Is at $54,600 – What This Means
In a Quicktake post on the CryptoQuant platform, market analyst Burak Kesmeci highlighted five “cost clusters” that could reveal the next move in Bitcoin price. For context, a cost cluster is essentially a price level that represents the average acquisition price of an asset (in this case Bitcoin) by different investor cohorts.
First, Kesmesi quickly revealed that Bitcoin’s most reliable support price, or realized price, is around $54,600. The realized price is a strong support area as it reflects the average cost basis of all BTC in circulation.
Source: CryptoQuant
Realized prices have also historically served as long-term price support during bearish periods. As a result, when Bitcoin price trades above this level, it is often a sign of existing structural strength, while below realized price it is usually a sign of impending doom.
Bitcoin could turn bullish in March, but in this situation
While Bitcoin prices may be showing support for a higher time frame, it is also true that there are a series of battles to fight as the world’s leading cryptocurrency rises. According to crypto experts, four resistance zones await to deny any possibility of an upward recovery.
The first of these zones is the realized price for 1-4 weeks, which shows the average price at which recent buyers entered the BTC market. According to the highlighted CryptoQuant data, this cost basis is at the level of approximately $71,600.
When Bitcoin price falls below this level, it indicates that recent participants are in a tough spot. Therefore, attempts to recover towards this price level will typically face significant resistance as this cohort would like to exit at breakeven.
The analyst further highlighted that the short-term holder realized price (STH RP) is approximately $90,800. This concerns investors who have held BTC for less than 155 days. If Bitcoin price manages to overcome this level of apparent resistance, it could signal a change in Bitcoin’s trend from bearish to bullish.
Above STH RP, there is a 365-day simple moving average that occupies the $98,900 price level. Then, a little further north, the realized price for 3-6 months is about $100,800. These indicators reflect the activity of medium-term Bitcoin holders and show realized prices and average closing prices over the past year.
In the big picture, Bitcoin is clearly in a bearish phase. Therefore, BTC needs to overcome these significant resistance levels before March becomes a pivotal month for market participants. As of this writing, Bitcoin’s value is approximately $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
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