The distribution of Bitcoin holding costs significantly impacts its price support and resistance levels. When many investors hold Bitcoin at a specific cost basis, these levels act as psychological and technical thresholds. Support emerges where large clusters of holders bought in, as they’re less likely to sell below their cost, stabilizing price drops. For instance, if a substantial volume was purchased at $30,000, this level may hold as strong support. Conversely, resistance forms where holders who bought at higher prices, like $60,000, may sell to break even, capping upward momentum. On-chain data, such as UTXO distribution, reveals these cost clusters, offering insights into potential price reactions. As Bitcoin’s price approaches these zones, market behavior often shifts, driven by profit-taking or loss-avoidance, making holding cost distribution a key tool for predicting price dynamics.