Bitcoin’s Short-Term Holders’ Average Buy Price Signals Potential Breakout

• Bitcoin’s average buy price of 1-3 month holders may signal the next breakout.
• Short-term holder behavior is a critical pivot point for Bitcoin’s bullish movements.
• UTXO consolidation and dormant activity typically precede major Bitcoin price rallies.

Recent data from CryptoQuant, an analytic platform, noted that the average buy price of short-term Bitcoin holders is a key metric to watch for future price movements. According to data shared on their X account, Bitcoin’s next potential breakout could be linked to the average buy price of holders who have retained the cryptocurrency for 1-3 months. 

The chart shared by CryptoQuant marks several yellow circles that emphasize significant moments when Bitcoin’s price either broke through or was supported by the average buy price of these short-term holders. Each instance led to substantial price increases. 

The analysis points out that this 1-3 month holding period frequently serves as a pivot point for bullish movements.

When Bitcoin reached its peak at $73,000, it was unable to surpass the average buy price of short-term holders, resulting in a bearish trend.

This demonstrates that the behavior of these holders can heavily influence Bitcoin’s price direction, either pushing it higher or signaling a reversal when resistance is strong.

Following the recent 50 basis point rate cut by the U.S. Federal Reserve, Bitcoin is once again nearing the critical average buy price of short-term holders. Analysts are closely watching whether this time Bitcoin will break through the resistance, which could signal a potential bullish movement.

Further insights from the UTXO (Unspent Transaction Output) chart reveal that periods of consolidation among long-term holders typically precede major rallies.

The chart also shows a pattern where dormant UTXO activity led to significant upward price movements. Bitcoin’s current price is hovering around $63,080, with a 5.68% increase over the past 24 hours.

If past trends repeat, this could be a pivotal moment for Bitcoin. Analysts and investors alike are keeping an eye on whether the cryptocurrency will break through short-term resistance and continue its upward trajectory.