Bitcoin Confronts Key Resistance Zone

Bitcoin has broken above $81,000 and is now facing a significant test between $83,000 and $86,000. This zone represents a dense cluster of potential short liquidations that could accelerate the move through the area if reached.

The True Market Mean, which averages the price paid by active trading participants, has been reclaimed by Bitcoin at around $76,660. According to Glassnode, this often signals a return to bullish territory and can trigger positive sentiment in the market.

As Bitcoin approaches this key level, attention is shifting toward the corporate treasury cost basis at around $80,421, followed by the US spot Bitcoin ETF cost basis near $85,638. These levels represent the average acquisition prices of important investor groups that could provide fresh tests for the rally.

Glassnode's data suggests that if Bitcoin enters the $83,000-$86,000 area, forced short covering could accelerate the move through the zone. 'If reached, price could move quickly through this zone as shorts are forced to cover,' Glassnode stated.