Analytics firm Glassnode has provided updates on key support levels for Bitcoin price, emphasizing the significance of supply concentration in the range of $95,500 to $97,000.
Analysis of Bitcoin's Key Support
According to Glassnode, a significant cluster of Bitcoin supply is concentrated between $95,500 and $97,000. This level is crucial as it marks an area where many holders acquired their coins. When the price revisits this zone, it will test the resolve of these holders: will they sell or add to their positions?
Cost Basis for Short-Term Holders
Short-term holders of Bitcoin—those who hold the asset for less than 155 days—have an average cost basis around $98,000. This level is significant because when the price is above it, holders are in profit, which may create selling pressure. A drop below their cost basis may shift sentiment negatively, increasing the risks of panic selling.
Scenarios for the Bitcoin Market
Glassnode outlines two potential scenarios: 1. A sustained hold above $97,000 would signal strong buying interest and continuation of bullish momentum. 2. A drop below $95,500 indicates weakness, potentially leading to selling pressure and accelerating price decline.
The important levels highlighted by Glassnode create a critical zone for Bitcoin price interaction. Holding above these levels, especially above $98,000, may support the bullish narrative, while a failure to hold and a break below $95,500 could indicate the start of a bearish phase.
