Bitcoin Reaches May High as Recent Buyers Face Increased Risk

Bitcoin has reached its May high of $81,050 after a 4% daily gain. This time around, recent buyers are in a more precarious position than they were when the price first touched this level.

The short-term holder cost basis has fallen significantly since May, from $78,713 to $71,188. This means that recent buyers have less of a buffer against potential losses, and a 2.9% dip would be enough to put them underwater again.

However, the implied cost basis shows that long-term holders are still holding on to their coins, which could provide support for the price in the short term. The spent output profit ratio (SOPR) is also relatively low at 1.0082, suggesting that there may not be much selling pressure from these holders.

The weekly chart shows a sequence of lower highs and lower lows since the $126,200 record, but Bitcoin has now printed a higher low and trades 35.8% below its all-time high. A weekly close above $82,842 would confirm the first higher high since the record, while support looks well-defined at the 200-day moving average of $69,664.