These Price Levels Are the Key to Bitcoin’s Resilience or Deeper Correction (Glassnode)

On-chain data analytics platform Glassnode has identified several price levels that are key to bitcoin’s (BTC) price trajectory in the coming weeks. Depending on which direction the leading digital asset is heading, there could be a massive correction or strong resistance that could allow for positive price movement.

According to Glassnode’s tweet, these price levels were obtained by analyzing the cost base distribution (CBD) metric, which measures the total supply of Bitcoins that have addresses with an average cost base within ranges of specific prices.

Bitcoin bottom discovery region

A key observation from the CBD analysis is that BTC is in dense supply between the $88,100 and $103,000 levels. This means that many investors are unloading their bitcoins within these price levels, most likely making a profit.

Below the dense cluster of supply is an area with much less concentrated supply: an air gap between $70,000 and $88,100. This means that this region has much less supply than between the $88,100 and $103,000 levels.

Glassnode revealed that the implication for the air gap level is that the area could act as a bottom discovery region if BTC enters a prolonged price contraction phase. During a lower discovery phase, BTC could drop to new weekly and monthly lows from time to time, just as it hit a daily record high during its price discovery phase after the US presidential election.

The good thing about the air-gapped region is that crypto investors and new buyers might be more eager to accumulate BTC at a relative discount. Bitcoin’s fall to $70,000 could trigger massive buying among market participants, who are anticipating substantial gains when the cryptocurrency breaks above $100,000 again.

Resilience or massive correction?

Interestingly, bitcoin has a significant chance of trading in the air-gap region because it has hovered around $88,100, the lower band of the dense cluster supply region, since mid-December. The price level also serves as the upper band of the gap area.

Data from CoinMarketCap showed BTC changing hands at $96,000 at the time of writing after trading around $91,400 barely two days ago.

Regardless, Glassnode said that $98,000 is a level where BTC buyers have remained resilient despite market fluctuations; therefore, the region represents a critical area of ​​interest for price action.

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