The recent movement in the cryptocurrency market has left many investors wondering when and where the Bitcoin price will bounce back. A fresh analysis of on-chain data suggests that the price bottom could be around $40,000.
This projection is based on the cost basis of long-term holders (LTH), who have held their coins for 155 days or more. The LTH cost basis refers to the average price at which these investors acquired their coins, and it often acts as a support level during bear markets.
The current LTH cost basis is around $40,363, about 40% from the current price point of Bitcoin. If the selling pressure continues, there is a likelihood that the price will approach this cost basis, potentially receiving support from long-term investors' reaccumulation.