Bitcoin (BTC) is attempting to recover from the losses it experienced in July, but fresh challenges are arising. According to on-chain data, a potential resistance at $65,000 could hinder the recovery process. This key level is crucial, as it may determine whether Bitcoin's price will continue to rise or fall.

The price of Bitcoin has dropped below the aggregate cost basis of short-term holders for the first time since August 2023. This means that short-term holders are now facing losses or holding positions in the red. As a result, they might attempt to leave the market at a loss or break even, which could increase selling pressure near $65,000.

On-chain analysis reveals that short-term holders are a significant force in the Bitcoin market. They account for a substantial portion of the overall trading volume and can influence the price movement. If they decide to sell their holdings near $65,000, it could lead to a surge in selling pressure, making it challenging for Bitcoin to break through this resistance level.

The $65,000 mark is also significant because it coincides with the 50-day moving average. This technical indicator is closely watched by traders and investors, and a failure to break above it could be seen as a bearish sign. If Bitcoin struggles to overcome this hurdle, it may lead to a decline in investor confidence and further price drops.

Despite these challenges, some analysts remain optimistic about Bitcoin's long-term prospects. They argue that the current price correction is a natural part of the market cycle and that Bitcoin has the potential to reach new heights in the future. However, in the short term, the $65,000 resistance level poses a significant obstacle that must be overcome.

Bitcoin's recovery faces a significant hurdle at $65,000, according to on-chain analysis. The selling pressure from short-term holders and the technical significance of this level make it a challenging obstacle to overcome. While some analysts remain optimistic about Bitcoin's long-term prospects, the short-term outlook remains uncertain.

Additionally, the market is closely watching the actions of institutional investors, who have been increasingly active in the Bitcoin market. Their decisions to buy or sell can significantly impact the price movement, and their involvement adds an extra layer of complexity to the market dynamics. As the situation unfolds, it's essential to keep a close eye on the on-chain data and market trends to better understand the future direction of Bitcoin's price.