Critical Level for Bitcoin: The Importance of $112,000

In the past few days, Bitcoin (BTC) has reached a new all-time high (ATH) of $126,000. However, it is crucial for the price to stay above $112,000 in the short term to prevent potential panic selling. Currently, the Bitcoin price is in a consolidation phase around the $121,000-$122,000 range.

CryptoQuant analysts indicate that the cost basis for short-term investors is at $112,000. They highlight that if the price falls below this level, short-term selling pressure may increase. According to the on-chain data shared by the analyst, the realized prices for investors over the past week and month are at $113,500 and $115,500, respectively. The weighted average cost for these two groups converges at $112,200. Therefore, this critical area emerges as the first strong support point if the price correction deepens.

Additionally, the cost basis for the group of investors holding Bitcoin for 3-6 months stands at $103,000, and those holding it for 6-12 months has decreased to $89,700. If the Bitcoin price falls below $112,000, these support regions should be monitored closely. The CryptoQuant analyst emphasized that maintaining the price above $112,000 is critical for preventing panic selling. Protecting this level is a determining factor for the health of the current bull cycle.