Bitcoin Breaks Above Key Level as Next Resistance Looms

Bitcoin has regained its position above $81,300 after rising more than 5% last week. This marks a significant milestone as it reclaims the True Market Mean, an on-chain development that suggests buyers may be holding unrealized profits.

The True Market Mean currently estimates at $76,660 reflects the average acquisition price of actively trading market participants. Movements above this metric can signal a return to bullish territory. Glassnode noted that Bitcoin's recovery above the True Market Mean level was indeed a return to bullish territory.

Bitcoin has now reclaimed its position above the corporate treasury cost basis at approximately $80,421. This means that average corporate buyers are potentially returning to profit. However, the cost basis for US spot Bitcoin ETF investors sits higher at around $85,638.

The accumulation of leveraged short positions creates a possibility of a short squeeze if BTC rises far enough to trigger liquidations. Short sellers could be forced to buy Bitcoin to close their positions, adding additional demand and potentially helping the price move rapidly through the resistance area.

Bitcoin remains comfortably above its 50-day, 100-day, and 200-day Exponential Moving Averages, which are clustered between roughly $72,000 and $75,000. The moving averages are also sloping upward, suggesting that the broader uptrend remains intact despite recent consolidation.