Bitcoin (BTC) is rebounding from a key support zone on its network, putting the $78,000 level back in focus for bulls. On Sunday, the Bitcoin price rose by approximately 2.5% to reach $74,000, with the recovery process starting around $72,500. This is reported by Cointelegraph.com reports.
The local dip approached the average purchase price of BTC holders who have held for three to six months. According to Glassnode data, the cost basis for this group is around $71,400, which analyst Marcus Corvinus called the "strongest near-term support level" for Bitcoin.
The analyst noted that this group of investors is still in profit, which is why they are striving to defend this level. The next potential target is $78,200, as this level corresponds to the realized price of holders of up to six months.
Historically, since 2017, Bitcoin's price rising above this metric has yielded high returns in the long term. Following such growth, BTC has added an average of 21.9% in the next 90 days and 36.6% in 180 days.
Based on the current $74,000 level, these forecasts could mean reaching targets of $75,700 in one month, $90,200 in three months, and $101,100 in six months.
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