Crucial Bitcoin Price Level: Analyst Predicts $82,000 May Be Key

As we approach the end of the year, Bitcoin's price has continued to exhibit a bearish trend, indicating that the leading cryptocurrency might wrap up December on a low note. Recent on-chain data has shed light on the significant price level that could impact Bitcoin's future movements.

Key Takeaways:

Bitcoin has maintained a bearish trend as December progresses.
Analyst Burak Kesmeci emphasizes $82,000 as a crucial price level for Bitcoin's future.
The average purchase cost for Bitcoin ETFs is approximately $82,000, making it significant for market demand.
A drop below $82,000 could lead to increased selling pressure and target the Realized Price near $56,000.
Currently, Bitcoin is trading around $89,310, reflecting recent declines.

Bitcoin

Understanding the Key Price Level: $82,000

Market analyst Burak Kesmeci recently shared insights on the Bitcoin price in a post on the X platform, revealing that the $82,000 mark could play a pivotal role in Bitcoin's next price movements. Kesmeci explained that this price point is critical because it converges with two influential cost bases in Bitcoin's historical pricing.

According to Kesmeci, the average purchase cost for Bitcoin spot exchange-traded funds (ETFs) is around $82,000. Given that ETFs are one of the strongest sources of demand for Bitcoin, monitoring their average cost-basis might provide a clear indication of the market's institutional sentiment.

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Source: @burak_kesmeci on X

Additionally, the analyst highlighted the Bitcoin True Market Mean metric, which tracks the cost of Bitcoin held by active investors—excluding mined or seldom-traded Bitcoin. In the current market phase, most active participants bought their Bitcoin at approximately $82,000.

Implications of a Price Drop Below $82,000

Typically, when Bitcoin's price falls below a significant support level, it often results in increased selling pressure as investors face potential losses. If the $82,000 level fails to hold, Kesmeci suggests we could see heightened bearish pressure as active investors attempt to minimize their losses.

More concerningly, historical data indicates that when Bitcoin drops below its active market participant cost basis, it tends to decline further, often targeting its Realized Price. Presently, Bitcoin’s Realized Price hovers near $56,000, which is considerably lower than the average purchase cost of its investors. Kesmeci cautioned that slipping below the $82,000 threshold could trigger a steep decline towards the $56,000 mark.

This potential drop would represent nearly a 40% decrease from the current trading price. As of now, Bitcoin is priced at approximately $89,310, reflecting a decline of over 3% in the last 24 hours.

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The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView