Bitcoin Trades Near $90K as On-Chain Cost Basis Zones Reveal Key Market Levels

Bitcoin continues to exhibit signs of renewed momentum, with the asset reclaiming ground lost during its recent corrective phase. The price of BTC has moved above $89,000, trading at approximately $89,062 at the time of writing, up 2.3% over the past 24 hours.

With the $90,000 mark now within sight, attention has turned to the behavior of various investor cohorts and how their average cost basis could influence upcoming price action.

While traditional chart levels like resistance and support remain important to many traders, a more data-driven view is emerging from on-chain analysis.

Cost Basis Zones Reveals Key Levels To Watch

CryptoQuant contributor Crazzyblockk recently highlighted key cost basis levels across Bitcoin holder segments, offering insights into where major price reactions may be concentrated.

These zones, derived from realized prices across different age groups of Bitcoin holdings, are proving useful in identifying areas of likely support and resistance.

The data focuses on realized prices, the average price at which various groups of holders acquired their Bitcoin, segmented by how long the assets have remained unspent.

According to the analysis, short-term holders, typically defined as those holding BTC for up to 155 days, have an average cost basis of approximately $91,500. This level currently represents a key resistance area, as it indicates the price point at which many recent buyers would begin to move out of loss and into profit.

At the same time, the cost basis for new holders, particularly those in the 1–3 month age band, is estimated around $83,700. This range is acting as a zone of support, given that it reflects the average entry point for recent market participants.

When Bitcoin’s price stays above this threshold, new buyers are more likely to maintain their positions, potentially reducing short-term selling pressure. Conversely, a drop below this level could result in capitulation from newer holders, introducing downside volatility.

Cost Basis Analysis Offers Insight Into Investor Behavior

The methodology behind these observations relies on segmenting Bitcoin’s Unspent Transaction Outputs (UTXOs) based on their age and calculating realized prices for each group.

This allows analysts to determine where clusters of investors may be in profit or at a loss. Crazzyblockk explains that these zones function as dynamic support and resistance levels, not based on technical indicators but on actual market behavior.

Such data-driven metrics help contextualize market moves beyond short-term speculation. If Bitcoin breaks above the short-term holder realized price near $91.500, it could signify a continuation of bullish behavior as more holders re-enter profitability.

On the other hand, a breakdown below the support level around $83.700 may introduce new selling pressure, particularly from participants who entered during the recent rally.

Featured image created with DALL-E, Chart from TradingView