[Analysis] "Short-term whale cost basis at $85,000…key resistance level in a bull market"

The average purchase price of whales (large investors) who have taken short-term positions in Bitcoin (BTC) was found to be in the mid-$80,000 range.

Burakkesmeci, a CryptoQuant contributor, said via CryptoQuant on the 12th (local time) that “the average purchase price of whales with a (Bitcoin) holding period of less than 155 days is currently estimated at around $85,600.” Burakkesmeci added, “It will be difficult for a bull market to take hold until new whales move into profit territory,” noting that “this zone has served as a key benchmark for gauging market direction in the latest cycle.”

Burakkesmeci pointed out that “looking back at Bitcoin cycles, the pattern is fairly clear.” He analyzed that “when Bitcoin’s price fell below the average purchase price of short-term whales, a bear market began; conversely, when the price reclaimed that level and held it steadily, the bull market continued.” He added, “In this cycle as well, this zone ($85,600) will be the most important resistance level,” noting that “Bitcoin tested this level in January but failed to break through, and subsequently slid to $60,000.”

The analysis suggests Bitcoin must break above this zone to enter a full-fledged uptrend. Burakkesmeci projected that “if Bitcoin’s price moves back above $85,600 and holds steadily, recently arrived whales will enter profit territory, bringing a positive shift in market sentiment,” adding that “this change in investor sentiment could act as a catalyst for the next rally.”