Bitcoin has shown resilience, bouncing back from the $80,000 mark following a significant correction from its all-time high in October, with the price maintaining levels above the average entry points of crucial metrics. The convergence of the True Market Mean, U.S. ETF cost basis, and the 2024 yearly cost basis around the low $80,000 range underscores this zone as a significant area of structural support. Bitcoin is currently priced at $90,161.70, having bounced above the $90,000 mark, representing a 15% increase from its low of approximately $80,000 on November 21. The price has found confluence support across three significant cost basis metrics: the 2024 yearly volume weighted cost basis, the True Market Mean, and the average U.S. spot exchange-traded fund cost basis.
These metrics provide insight into the areas where investors are expected to uphold their positions amidst market pullbacks. The support zone was crucial, as it closely matched the average purchase prices of various investor groups. The True Market Mean signifies the average onchain purchase price of bitcoin that is currently held by active market participants. The analysis zeroes in on coins that have experienced recent movement, effectively filtering out long-dormant supply. This approach highlights the cost basis of investors who are most inclined to engage in trading activities.
In this pullback, the True Market Mean hovered around $81,000, serving as a definitive support level. Bitcoin notably first surged past this level in October 2023 and has not dipped below it since, underscoring its significance as a structural bull market threshold. The U.S. spot ETF cost basis represents the weighted average price at which bitcoin has entered U.S. listed spot ETFs. Sources calculates this by combining the daily ETF inflows with the market price. The average cost basis currently stands at approximately $83,844, as reported by sources, with bitcoin once again rebounding from this level, reminiscent of its behavior during the April tariff-induced selloff.
The third metric, the 2024 yearly cost basis, monitors the average price at which coins obtained in 2024 were removed from exchanges. Sources has identified a trend where yearly cohort cost bases often serve as support during bull markets. The 2024 cost basis, sitting close to $83,000 as reported, offered further validation of demand and acted as a support level during the April correction. The metrics underscore the significant demand for support around the $80,000 mark.