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Analyst: Average Cost of Holding BTC for Less Than 3 Months Again Becomes Support Level for Bitcoin Pullback
Summary: In a recent development, on-chain data analyst Murphy stated on social media that the market reacted in advance to Powell's speech, pulling back to $112,000 before the speech. This price happens to be the average cost of holding BTC for less than 3 months. Murphy further explained that holding BTC for less than 3 months ...
In a recent development, on-chain data analyst Murphy stated on social media that the market reacted in advance to Powell's speech, pulling back to $112,000 before the speech. This price happens to be the average cost of holding BTC for less than 3 months.
Murphy further explained that holding BTC for less than 3 months represents a significant and active portion of short-term chips, with emotions of these new investors being the most easily swayed. When the price falls below the cost line, unrealized gains turn into losses, bringing considerable psychological pressure and shifting market sentiment from optimism to pessimism. This cost line happens to be at $112,000; the support comes from the reluctance of these short-term investors to sell more chips as they approach breakeven, reducing overall selling pressure. At least they have not completely lost confidence in the future, so the emotional judgment should be more about anxiety than panic.
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Link: Analyst: Average Cost of Holding BTC for Less Than 3 Months Again Becomes Support Level for Bitcoin Pullback [Copy]
