Bitcoin Hits May Highs as Recent Buyers Enjoy Wider Margin
Bitcoin (BTC) has reached $81,050, retracing to its May 14 price. This time around, however, recent buyers are sitting further from breakeven than they were then.
Average entry prices for coins younger than 155 days have dropped sharply according to Glassnode data, while the Bitcoin price remains at a similar level.
The Short-Term Holder Cost Basis Reset has almost $7,500 lower since May. The implied cost basis stood near $78,713 in May and now sits near $71,188.
This changes the margin for error; in May, a 2.9% dip would have pushed the whole cohort back underwater. Today, they hold a 12.4% buffer, more than four times wider.
Historically, this buffer has decided whether recoveries hold or fail. The Spent Output Profit Ratio (SOPR) complicates the picture however, printing 1.0082 on September 3, indicating coins moving on-chain changed hands at less than 1% average profit.
A weekly close above $82,842 would confirm the first higher high since the record of $126,200. Resistance sits immediately above at the 0.382 Fibonacci retracement near $83,917.