Short-term holder wallets are in the red and may liquidate near their breakeven level at $65,000.

Long-term holder wallets, with average cost of less than $20,000, are incentivised to hold or boost their coin stash.

As bitcoin (BTC) looks to recover from the July loss, new challenges loom, with onchain data suggesting a potential resistance at $65,000.

The leading Cryptocurrency by market value traded nearly 1% higher at $63,200 as of writing, looking to regain some poise after ending June with a 7% loss. June's drop, which reversed May's upswing, mainly occurred due to miner selling and concerns that ETF inflows represent non-directional arbitrage bets instead of outright bullish bets.

Notably, the decline has pushed prices well below the widely tracked aggregate cost basis of short-term bitcoin holders, or wallets storing cost for 155 days or less. As of writing, the aggregate cost basis for short-term holders was $65,000, according to data source LookIntoBitcoin. Onchain analytics firms consider realised price as the aggregate cost basis, reflecting the average price at which coins were last spent on-chain.

In other words, short-term holders now face losses or hold positions in the red and could attempt to exit the market at a loss or breakeven, potentially adding to selling pressure near $65,000.

"The price of bitcoin has fallen below the aggregate cost basis of short-term holders for the first time since August 2023. In the short-term, we should expect some resistance around the $65,000 level as short-term market speculators may look to exit their positions at a 'breakeven' level," analysts at Blockware Intelligence said in the latest edition of the newsletter.

"Last summer when BTC lost the STH RP support level, price traded sideways for another two months before finally breaking out again," analysts added.

Meanwhile, long-term holder wallets are strongly incentivised to maintain or boost their coin stash as their average cost is less than $20,000, per LookIntoBitcoin. Yes, you read it right; their average cost basis is nearly 70% less than the BTC's going market price.

Besides, bitcoin's 15% price pullback from the record high of over $73,500 in March may appear substantial for a traditional market investor, but is a normal bull market correction for a long-term Crypto holder.

"During the 2017 cycle BTC had 10 drawdowns of 20% or more. This is a normal, healthy, bull market correction. Bitcoin’s price volatility shakes out weak hands and provides opportunities for strategic capital deployment to those with a longer time horizon," Blockware said.

Source