Chain data shows that multiple cost basis metrics confirm strong demand and investor conviction around the price level of $80,000.
Bitcoin has so far traded above $90,000, 15% higher than its low on November 21 around $80,000, with the price finding solid support across three key metrics of the cost basis: the volume-weighted cost basis for the annual trading year of 2024, the real market average, and the average cost basis for U.S. spot exchange-traded funds (ETFs).
These metrics help identify the places where investors are likely to defend their positions during downturns. The support area has proven significant, aligning closely with the average acquisition prices for several cohorts of investors.
First, the real market average represents the average on-chain purchase price of Bitcoin held by active market participants. It focuses on coins that have been recently moved, filtering out long-term dormant supply, thus reflecting the basis cost for investors likely to trade.
During this pullback, the real market average was close to $81,000 and acted as a clear support. It is noteworthy that Bitcoin surpassed this level for the first time in October 2023 and has not traded below it since, reinforcing its significance as a structural threshold for a bull market.
Second, the basis cost of U.S. spot exchange-traded funds reflects the volume-weighted average price at which Bitcoin flowed into U.S.-listed ETFs. This is calculated by Glassnode using aggregated daily flows of funds with market price.
The average basis cost is currently around $83,844, according to Glassnode, and Bitcoin has bounced back from this level, as it did during the sell-off caused by tariffs in April.
The third metric, the annual basis cost for 2024, tracks the average price at which earned coins were withdrawn in 2024 from exchanges. CoinDesk Research demonstrated a pattern indicating that the annual basis costs of cohorts tend to act as support during bull markets.
In this case, the basis cost for 2024 approached $83,000, according to checkonchain, providing additional confirmation of demand, and was also seen as support during the correction in April.
These metrics highlight the depth of demand and support in the $80,000 area.
