Bitcoin News | Bitcoin Could Pull Back to $72,300–$75,700 After Hitting Short-Term Holder Resistance, Analyst Murphy Says

Bitcoin met resistance at the upper band of the short-term holder cost basis and could pull back to between $72,300 and $75,700 if a 2023 pattern repeats, market analyst Murphy wrote on November 4, according to BlockBeats.The 2023 PatternMurphy pointed to January to September 2023, when bitcoin hit resistance three times at one standard deviation above the short-term holder realized price (STH-RP), the average cost basis of recent buyers. A pullback followed each time:The first retraced exactly to the STH-RP.The second dipped slightly below it.The third fell between the STH-RP and one standard deviation below it.Key Levels NowThe STH-RP is now around $75,700, with one standard deviation below it at about $68,900, Murphy said. Based on the 2023 pattern alone, he sees a pullback to $75,700, to $72,300, or somewhere between the two as possible. The $72,300 level is the midpoint between the STH-RP and the lower band.Seller Exhaustion SignalMurphy also cited his Seller Exhaustion Index. Its reading when bitcoin fell to around $77,000 was the second-lowest of this cycle, behind only the signal in August this year.A Trading Plan, Not a ForecastMurphy stressed that he does not try to predict market moves and uses the analysis only to build trading plans. He said it is for reference only and is not investment advice.