Definition ∞ Collective buying price refers to the average price at which a group of investors or a market segment has acquired a particular asset. This metric aggregates the purchase prices of a significant cohort of market participants, providing insight into their average cost basis. It helps identify levels where substantial support or resistance might occur, as many investors may seek to defend their initial investment value. Understanding this price point aids in assessing potential market behavior.
Context ∞ In cryptocurrency analysis, tracking the collective buying price of specific cohorts, such as long-term holders or large entities, helps determine key psychological and technical price levels. News often references these aggregate cost bases to explain market reactions during price fluctuations. It serves as an indicator of accumulated market conviction or vulnerability.
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