BTC faces heavy resistance around $80K, institutional demand key

A significant resistance level for Bitcoin is forming around the $80,000 mark, as this is where a large concentration of investors' average purchase prices lies, according to a recent analysis. According to Decrypt, Jim Ferraioli, Head of Crypto Research at the Schwab Center for Financial Research, noted that the "active investor cost basis," which reflects the average price of Bitcoin traded on the secondary market, is $78,000. This level coincides with the point where last week's rally stalled. He also pointed out that the $83,000 range overlaps with the average cost basis for investors in spot BTC ETPs. Ferraioli suggested that these price levels could see selling pressure from investors looking to break even, adding that since most investors are currently at a loss, these areas could act as even stronger resistance. However, Simon Jones, co-founder of the decentralized derivatives exchange Reya, commented that institutional demand could absorb this selling pressure. He argued that institutions invest for structural reasons rather than for short-term holding, and their sustained demand could be sufficient to absorb the profit-taking that occurs at these resistance levels.