Bitcoin Nears $106K as Rally Charges Forward—But This Key Resistance Looms

Bitcoin's bull run shows no signs of slowing as it flirts with the $106,000 mark—another reminder that crypto winters thaw faster than Wall Street analysts can say 'efficient market hypothesis.'

Yet traders eye a critical resistance level that could make or break the rally. Will institutional FOMO overpower the sell pressure, or is this just another pump before the inevitable 'correction'? Only the charts—and the whales—know for sure.

BTC Price Faces Significant Resistance Above $106K

In a new post on the social media platform X, on-chain analyst Burak Kesmeci revealed two major levels that could be critical to the mid- to long-term trajectory of the Bitcoin price. This analysis is based on the realized price of a specific class of investors known as short-term holders (STH).

The bitcoin short-term holders are known for their reactive and speculative nature, as they are often triggered by sudden price movements. Hence, these investors tend to open and close their positions within a short period.

In his post on X, Kesmeci revealed three important levels based on the realized prices of investors within certain unspent transaction output (UTXO) age bands. Specifically, the on-chain analyst highlighted cost bases of investors within 1 week – 4 week ($106,200), 1 month – 3 month ($87,300), and 3 month – 6 month ($97,500) age bands.

According to Kesmeci, the Bitcoin price is likely to face significant resistance at around the $106,200 level, where 1-week – 4-week investors have their cost bases. The rationale behind this is that STH at a loss may close their positions when they return to their cost basis, leading to downward pressure and the formation of a resistance level.

On the flip side, Kesmeci also highlighted the realized price ($97,500) of short-term investors within the 3-month – 6-month age band as another critical level for the Bitcoin price. The analyst mentioned investors within this class may consider a MOVE towards this realized price as an opportunity to defend their positions, leading to the formation of a support cushion.

In essence, this piece of on-chain data suggests that the bitcoin price might be approaching a major resistance level just above $106,000. If it successfully breaches this level, investors might see the premier cryptocurrency revisit its all-time high of $111,871.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $105,700, reflecting a 1.3% increase in the past 24 hours. According to data from CoinGecko, the market leader is up by more than 1% in the last seven days.