Over the past few weeks, the Bitcoin price has not been able to sustain any meaningful momentum in the journey to recover its six-figure valuation. After falling to just above $81,000 on Tuesday, March 18, the flagship cryptocurrency pushed for the $87,000 mark before facing a significant level. 

Below is why the $87,000 level could prove pivotal to the long-term health of the Bitcoin price.

5.58 Million BTC Addresses ‘Sitting On A Hot Potato’

In a March 21 post on the X platform, popular crypto analyst Maartunn discussed the significance of $87,000 as a crucial level for the future trajectory of the Bitcoin price. The reasoning behind this specific analysis is the average on-chain cost basis of several BTC investors.

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Cost-basis analysis involves evaluating the capacity of a price level to act as either resistance or support based on the total amount of coins purchased in or around it. As observed in the chart below, the size of the dot reflects the number of coins bought within a particular price bracket. (hence the strength of the support or resistance area).

According to Maartunn, about 5.58 million addresses acquired 3.79 million BTC (worth $367 billion at an average price of $97,059) between the $87,867 – $106,839 region. The analyst noted that the investors here are “sitting on a hot potato” and in the red, as they all bought at prices well above the current price.

Typically, this $87,867 – $106,839 region serves as a crucial resistance area, as investors are likely to sell their assets should the Bitcoin price return to their cost basis. This selling activity would put some downward pressure on the premier cryptocurrency, hindering the further upward price movement.

Furthermore, Maartunn identified the investors within the $87,867 – $106,839 region as short-term holders, a class of investors known to be “fragile” and more reactive to slight market movements. Hence, the analyst noted that this might not be an ideal scenario, especially if the market sees another wave of bearish pressure.

Short-term holders have been associated with significant sell-off events (in reaction to price fluctuations). Ultimately, this implies that the Bitcoin market could experience a severe capitulation event if the short-term investors in the $87,867 – $106,839 region are forced to realize their losses.

Bitcoin Price At A Glance

As of this writing, the price of BTC is hovering around the $84,000 mark, reflecting no significant change in the past 24 hours.

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Featured image from iStock, chart from TradingView

The Boring Company opened a transit station in Las Vegas on Friday and announced Dogecoin as a new payment method for using the Vegas Loop system, according to reporting from CNN Business.

Boring Company founder and Tesla CEO Elon Musk said in a tweet that he’s “supporting Doge wherever possible,” in response to CNN Business’s story being shared on Twitter, all but confirming the new use case for Dogecoin, the tenth-largest cryptocurrency by market capitalization, according to CoinMarketCap.

The Las Vegas Convention Center Loop has three different stations at exhibition halls within the Las Vegas Convention Center (LVCC) and will one day provide an underground connection to Resorts World Las Vegas. Based on the destination, travel times using the tunnel system vary between one and four minutes.

It consists of 1.7 miles of tunnels and was built in just a year. The tunnel system reduces a cross-campus journey that typically takes 45 minutes of walking to around two, according to the company’s website, and cost $47 million to build.

Currently, drivers using Teslas can travel underground from Resorts World to the LVCC, but in order to use the tunnels connecting the exhibition halls, drivers must exit one tunnel through a station called Riviera and cross a parking lot to enter another called West Station.

While rides using the Loop are currently free, riders will eventually be able to scan a QR code at the New Resorts station and purchase tickets using Dogecoin or a traditional credit card, according to CNN Business.

It is the latest example of Musk using one of his businesses to shed a positive light on Dogecoin, a meme coin created as a joke back in 2013. In May, Musk announced that merchandise for Tesla could be purchased using Dogecoin and that SpaceX would soon follow suit.

Musk has championed Dogecoin for years, through spats with the coin’s co-founder and an appearance on SNL that saw the asset’s price plummet following the episode’s debut. Last month, the billionaire said he will keep supporting Dogecoin on Twitter. When a user replied to the statement saying Musk should keep buying Dogecoin, he responded, “I am.”

Under the attention of Musk, Dogecoin reached a peak of 73 cents in May of last year. The Tesla CEO originally sparked fervor around Dogecoin back in 2019 when he tweeted, “Dogecoin may be my fav cryptocurrency.”

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Tesla and SpaceX CEO Elon Musk continues to show support for Dogecoin, with one of the billionaire’s firms, The Boring Company, allowing customers to pay for Loop rides with the memecoin.

• According to CNN on Wednesday (July 6, 2022), The Boring Company, an infrastructure, and tunnel construction firm, first announced the dogecoin payment option on July 1.
• Customers will be able to pay with the crypto when they take a ride using Tesla vehicles on the company’s Las Vegas transit system called Loop.
• The Loop ride travels at 35 miles per hour (mph), as against the original 150mph. Passengers will pay $1.50 for single rides, while customers can purchase day passes for $2.50. Also, riders not willing to pay with DOGE can make payments in U.S. dollars or credit cards.
• Meanwhile, rides are currently free for passengers using Loop, with charges coming at a later date. Furthermore, with the first Loop station already opened outside the Las Vegas Convention Center, there are plans to construct over 50 additional stations on the Vegas Strip.
• Back in May, Elon Musk announced that his space exploration firm SpaceX will soon join electric vehicle manufacturing giant Tesla to accept DOGE payment for merchandise.
• The latest development signals Musk’s unwavering support for Dogecoin, despite a $258 billion lawsuit recently filed against the billionaire and his companies, Tesla and SpaceX.
• An aggrieved DOGE investor slammed Musk with a lawsuit, accusing the entrepreneur of promoting a token that the plaintiff describe as a pyramid scheme. At the time of writing, Dogecoin is 90% down from its all-time high of $0.73 recorded in May 2021.

Elon Musk’s tunnel construction firm The Boring Company (TBC) has begun allowing customers to pay for rides on its Las Vegas transit system using Dogecoin (DOGE)

A Wednesday report from CNBC said the new payment option via BitPay surfaced on July 1, a day after the opening of its new Loop station at the Las Vegas Convention Center.

While The Boring Company has not officially confirmed the new payment method, founder Elon Musk seemingly did when he responded to a tweet about the news, saying: “Supporting Doge wherever possible.”

Supporting Doge wherever possible

— Elon Musk (@elonmusk) July 6, 2022

On the same day, DogeDesigner, a graphic designer for Dogecoin Foundation, shared a video with his 13,600 Twitter followers with him navigating through the Vegas Loop booking page and making a purchase of a day-pass using 37.52 DOGE via BitPay.

EXCLUSIVE: The Boring Company is accepting Dogecoin via BitPay. Here’s the video of booking a day pass in Vegas Loop using #Dogecoin. @elonmusk @BillyM2k pic.twitter.com/lmpOkugYGp

— DogeDesigner (@cb_doge) July 7, 2022

The new Loop station is located underneath an integrated resort called Resorts World Las Vegas and is the fourth stop on the 1.7-mile Las Vegas Convention Center Loop. 

Using the subterranean tunnel system, commuters can catch human-driven Tesla-branded electric vehicles from one stop to another.

It’s a far cry from the original plans for the Vegas “hyperloop,” which was to use magnetic propulsion to move passenger-carrying capsules at high speed through a pressurized tunnel system.

The company is still working on implementing driver-less vehicles on its Vegas transportation system in the future.

Supporting Dogecoin payments on Loop is only the latest integration for Musk’s fleet of companies.

Related: Dogecoin price could rally 20% in July with this bullish reversal pattern

Last December, Tesla CEO Musk announced that the electric vehicle company would begin accepting DOGE for certain merchandise purchases, which saw Dogecoin’s price gain 25% following the announcement.

In May 2022, Musk announced his plans to extend the payment option for his space exploration company SpaceX, though there was no significant impact on price.

Dogecoin is currently priced at $0.06851 at the time of writing, up around 1.15% over the last 24 hours.