Bitcoin prices are currently undergoing a consolidation phase after reaching new highs in August. Analysis reveals important support levels and the behavior of short-term holders.
Analysis of Bitcoin Support Levels
Glassnode's analysis indicates that Bitcoin's current price action is forming a consolidation corridor, with a key support level set at $104,000. Currently, Bitcoin trades within the 0.85-0.95 quantile range, roughly between $104,100 and $114,300. Historically, this zone has served as a consolidation area after euphoric peaks.
Unpredictability of Short-Term Holders
The behavior of short-term Bitcoin holders is also drawing analyst attention. Recent data shows that the percentage of short-term holders in profit has dropped from over 90% to 42%, indicating stress and selling pressure. However, such conditions can quickly reverse, explaining the bounce back from $108,000 to around $112,000.
Future of Bitcoin: Upcoming Moves
The current consolidation phase for Bitcoin is crucial in determining its next movements in the market. Analysts continue to track support levels and holder behavior to understand whether this phase signifies a temporary pause or deeper bearish trends.
In conclusion, Bitcoin's current consolidation may significantly impact its upcoming movements, including important support levels and the behavior of short-term holders. The coming days may witness sharp changes in the market.
