With only days remaining before the end of the two-week ceasefire between the US and Iran, US President Donald Trump, in his latest statements, indicated that he does not want to extend the ceasefire with Iran, signaling the potential for a renewed escalation of tensions in the Middle East.
While Trump’s statements imply that conflicts could resume when the ceasefire ends, an analyst shared his expectations for Bitcoin ($BTC).
Accordingly, Jim Ferraioli, an analyst at the Schwab Financial Research Center, warned that Bitcoin faces significant resistance between $78,000 and $83,000, which are investor cost floor levels.
Jim Ferraioli noted that the recent surge in Bitcoin has stalled at the $78,000 level, which is the cost floor for active investors.
Arguing that this level is one of the significant resistances in the $BTC rise, the analyst stated that another important resistance is $83,000, which is the average cost floor for spot Bitcoin ETF investors.
The analyst added that these two price levels could face selling pressure from investors aiming to reach the break-even point, and could act as resistance.
“Both levels indicate that the average Bitcoin investor is currently at a loss.”
Furthermore, these levels can function as much stronger resistance areas than moving averages.”
However, Simon Jones, co-founder of the decentralized derivatives exchange Reya, also stated that $83,000 is a significant resistance level for Bitcoin. Jones also indicated that significant selling pressure could be experienced at this level.
However, Jones believes that corporate demand can absorb this selling pressure. He stated that institutions invest for long-term reasons rather than short-term investment, and that sustained demand may be sufficient to absorb profit-taking occurring at these resistance levels.
*This is not investment advice.
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