These three indicators show that Bitcoin has found strong support near $80,000

Bitcoin BTC$90,174.13 has so far rebounded 15% above $90,000 from its Nov. 21 low of about $80,000, supporting a confluence of price research across three important cost metrics: 2024 annual volume-weighted cost basis, true market average, and average cost basis for U.S. spot exchange-traded funds (ETFs).

These indicators can help identify where investors are most likely to defend their positions during a drawdown. This area of support was found to be extremely important as it closely matched the average acquisition price of multiple investor cohorts.

First, the true market average represents the average on-chain purchase price of Bitcoin held by active market participants. This reflects the cost base of investors most likely to trade as it focuses on coins that have recently moved and excludes long-term dormant supply.

During this decline, the true market average was around $81,000, which served as clear support. Notably, Bitcoin surpassed this level for the first time in October 2023 and has not traded below this level since then, reinforcing its importance as a structural bull market threshold.

Second, the cost basis of US spot ETFs reflects the weighted average price of Bitcoin flowing into US-listed spot ETFs. This is calculated by Glassnode using a combination of daily ETF inflows and market prices.

The average cost basis is currently around $83,844, according to Glassnode, and Bitcoin has rebounded from this level again, as it did during April’s tariff-driven selloff.

ETF cost base (glassnode)

The third metric, 2024 Annual Cost Base, tracks the average price at which coins acquired in 2024 were withdrawn from exchanges. CoinDesk Research showed a pattern that the annual cohort cost base tends to act as support during bull markets.

In this case, according to checkonchain, the 2024 cost basis is close to $83,000, further confirmation of demand, which was also considered support during the April correction.