After a long period of unusually low volatility, Bitcoin’s next major price movement is likely imminent and could drive BTC to $32,000, according to Glassnode’s principal on-chain analyst James Check. This price level is where Bitcoin’s “true cost base” is, Check explained in an exclusive interview with Cointelegraph.
To calculate Bitcoin’s average cost basis — the average price at which BTC was purchased — Check and his team removed forever-lost coins from the calculation and focused on active Bitcoin investors.
“That’s where the average reversion level would be, so a rally at that level, to be honest, wouldn’t surprise me,” he said.
Despite this bullish scenario, Check also points out that there are likely a large number of investors who are tired of the bear market and are waiting for Bitcoin to reach this level before selling, which puts pressure on the price.
“That’s an area where you start to have more resistance,” he pointed out.
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