As Bitcoin makes a slow but necessary recovery following last week’s market sell-off— a move that sent the asset back to the $100,000 price level, market participants are even more observant, outlining what it would take for the big bull to break past its previous all-time high.

According to an on-chain analytical piece from Glassnode, Bitcoin could surge past its all-time high of $111,970, attained in May, to hit never-before-seen price levels, “should the market enter price discovery.” 

Notably, Bitcoin’s current price is determined by buying and selling activities. Factors such as supply and demand, liquidity, and market sentiment are some of the determining factors observed in the price discovery process for assets like Bitcoin. 

According to Glassnode’s analysis, a key support level is essential for Bitcoin to maintain underlying bullish pressure. The Short-term holder cost basis—the average acquisition price of Bitcoin by crypto investors who have held the asset for 115 days or less—interestingly doubles as the aforementioned support level.  

As seen in Glassnode’s report; 

“The $97.6k Short-Term Holder cost basis continues to serve as a pivotal support level necessary for maintaining local bullish momentum.” 

In contrast, the bulls are primed to retest a new ATH if the nearest resistance level is broken in the near term. “On the upside, the $115.4k zone emerges as the first significant resistance should the market enter price discovery.” The report read. 

After failing to sustain momentum above the $101,000 price level last week, Bitcoin bulls are making a notable comeback. Recovery gains sustained this week sent the asset to $110,300. 

With Bitcoin around 1.5% away from its previous all-time high, renewed interest in the asset suggests that investment confidence has been strengthened for the near term. At the time of this report, Bitcoin is trading at $108,729, while 7-day gains surged by 4.06%.