The Bitcoin price performance was quite disappointing over the past month. The flagship cryptocurrency has struggled to break sustainably above $70,000 throughout February, with prices only reaching $71,000 before facing sharp reversals.
It, then, becomes intuitively evident that this price region might be a key level acting as resistance to Bitcoin’s bullish attempts. Below are some other crucial levels to watch for in March and what they could potentially mean for the Bitcoin price.
BTC Realized Price Sits At $54,600 – What This Means
In a Quicktake post on the CryptoQuant platform, market analyst Burak Kesmeci highlighted five “cost clusters” that might reveal the next move for the Bitcoin price. For context, Cost clusters are essentially price levels that represent the average acquisition price of an asset (Bitcoin, in this case) by different investor cohorts
To start with, Kesmeci immediately revealed Bitcoin’s surest support price — the realized price — to be around the $54,600 mark. The realized price is a strong support region because it reflects the average cost basis of all the BTC in circulation.
Source: CryptoQuant
Also, realized prices have historically served as long-term price support during bear phases. As a result, when the Bitcoin price trades above this level, it is often a sign of extant structural strength, while a break beneath the realized price is usually a sign of impending doom.
Bitcoin Could Switch Bullish In March — But On This Condition
While the Bitcoin price may be displaying its higher timeframe backing, it is also true that the world’s leading cryptocurrency has a series of battles to fight as it ascends. According to the crypto pundit, four resistance zones lie in wait to reject possible upward recovery.
The first of these zones is the 1 – 4-Week Realized Price, which reveals the average price at which recent buyers entered the BTC market. According to the highlighted CryptoQuant data, this cost basis stands at around the $71,600 level.
When the Bitcoin price trades beneath this level, it signals that the latest participants are under severe heat. Hence, recovery attempts towards this price level would typically be met with significant resistance, as this cohort would want to exit at break-even.
The analyst further highlighted that the Short-Term Holder Realized Price (STH RP) is around $90,800; this concerns investors who have held BTC for less than 155 days. If the Bitcoin price manages to overcome the evident resistance at this level, it could signal a change in Bitcoin’s trend from bearish to bullish.
Beyond the STH RP, the 365-day Simple Moving Average sits, occupying the $98,900 price level; then, a little more up North, the 3–6 Month Realized Price stands around $100,800. These metrics reflect the activity of Bitcoin’s medium-term holders, showing their realized price and average closing prices over the past year.
In the grand scheme, Bitcoin is clearly in a bearish phase. Thus, before March can stand as the pivotal month for market participants, BTC has to overcome those critical resistance levels. As of this writing, Bitcoin is valued at around $63,696, reflecting an over 5% decline in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView