Bitcoin has experienced a bounce above $90,000, marking a 15% increase from its low of approximately $80,000 on Nov. 21. This price level has garnered support from three key metrics: the 2024 yearly volume weighted cost basis, the True Market Mean, and the average U.S. spot exchange-traded fund (ETF) cost basis.
These indicators are crucial for understanding where investors are likely to support their positions during market downturns. The support zone is significant, as it closely aligns with the average acquisition prices across various investor groups.
The True Market Mean indicates the average on-chain purchase price of bitcoin held by active traders. It emphasizes coins that have been recently transacted, excluding long-held assets, thereby representing the cost basis of the most active market participants.
During this recent pullback, the True Market Mean hovered around $81,000, providing clear support. Remarkably, bitcoin first surpassed this threshold in October 2023 and has not dipped below it since, highlighting its role as a critical point in the ongoing bull market.
Next, the U.S. spot ETF cost basis captures the weighted average price at which bitcoin has been integrated into U.S.-listed spot ETFs. Glassnode calculates this using daily ETF inflows combined with prevailing market prices.
Currently, the average cost basis rests around $83,844, as per Glassnode data, where bitcoin again found support at this level, similar to its response during the selloff driven by tariff concerns in April.
The third metric, the 2024 yearly cost basis, tracks the average price at which coins acquired in 2024 were withdrawn from exchanges. CoinDesk Research has established that yearly cohort cost bases often serve as support during bullish phases.
In this context, the 2024 cost basis hovering around $83,000, as indicated by checkonchain, provided further confirmation of demand, once again observed as support during the April correction.
These metrics emphasize the robust demand for support around the $80,000 mark.
