Bitcoin’s Uptrend Solid as Long as Crucial Support Holds, Glassnode Says
The analytics platform Glassnode has emphasized the importance of a key support area for Bitcoin’s (BTC) current uptrend. According to Glassnode, the data visualization tool Cost Basis Distribution (CBD) heatmap indicates strong support for Bitcoin within the $93,000 – $100,000 range.
CBD is a metric that displays where investors bought their coins and how much they are holding, highlighting price zones with significant supply clusters. These zones can act as either support or resistance levels, depending on whether investors are accumulating or offloading their holdings.
Glassnode asserts that the $93,000 to $100,000 price range is critical for BTC’s bullish momentum, serving as a key support level. However, a breach below this range could trigger a sell-off, especially if holders with a cost basis in this zone start to capitulate and increase selling pressure.
Despite the current support, Glassnode notes that Bitcoin is exhibiting signs of reduced profitability and sluggish on-chain activity, signaling a period of consolidation. This phase is characterized by decreasing volatility and weakening investor engagement.
Glassnode highlights the need for a resurgence in profitability and activity metrics to fuel a potential breakout to new all-time highs. The market is currently absorbing previous gains and awaiting fresh momentum and increased demand.
The analytics firm also points out that Bitcoin’s recent push to a new all-time high in May lacked significant spot volume, with volumes lower than earlier stages of the ongoing bull market. As of now, Bitcoin is trading at $107,256.
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