According to CoinDesk: Despite Bitcoin's (BTC) nearly 90-degree recovery from $38,500 to $48,000 within three weeks, the digital currency could potentially encounter some resistance near the $48,500 mark, indicates on-chain analysis by IntoTheBlock.
According to the analysis, over 800,000 crypto addresses hold nearly 270,000 BTC, acquired at an average cost of $48,491. When Bitcoin's price reaches this average acquisition cost, some holders might choose to liquidate their holdings, thus halting the bullish momentum.
"Bitcoin has set its sights on $50K! To get there, there is one important resistance level left. Over 800k addresses acquired nearly 270K BTC at an average price of $48,491. These addresses are presently in the red and might provide sell pressure as they break even on their position,” IntoTheBlock commented on social media platform X.
Notwithstanding the possible resistance point, analysts foresee the price of Bitcoin topping $52,000 in the upcoming weeks and exceeding $100,000 by the end of the year due to substantial inflows into spot Bitcoin ETFs and an optimistic turn in the stock market.
As of press time, Bitcoin was trading near $48,000. Any increase in sell-off pressure as the price approaches the resistance level will be worth monitoring for market participants.
