Bitcoin Shows Resilience with Strong Support Near $80,000

Bitcoin has shown remarkable resilience with strong support near $80,000, bouncing back to over $90,000, marking a 15% increase from its recent low. According to CoinDesk, this price action is supported by three key metrics: the True Market Mean, the U.S. spot ETF cost basis, and the 2024 yearly volume weighted cost basis.

The True Market Mean, which reflects the average on-chain purchase price of Bitcoin held by active market participants, served as critical support around $81,000 during the recent pullback. Additionally, the average cost basis for U.S. spot ETFs is approximately $83,844, which also acted as a support level.

Cointelegraph highlights that a strategy employed by long-term Bitcoin holders, known as covered calls, is applying downward pressure on spot prices. This strategy involves selling call options, which leads market makers to sell spot Bitcoin to hedge their exposure.

Consequently, while demand from ETF investors remains strong, the call selling has created a challenging environment for Bitcoin's price momentum. Analysts predict that Bitcoin's price may remain choppy due to this options market influence, although some anticipate a rally if the U.S.

Federal Reserve resumes its rate-cutting cycle. However, other forecasts suggest a potential drop to $76,000, indicating a mix of bullish and bearish sentiment in the market.