Bitcoin (BTC) Potential for 15% Price Increase, Glassnode Analysis Shows
Bitcoin (BTC) could see a significant increase of around 15% from its current level if demand for the leading cryptocurrency remains strong and the market continues its upward trend, according to analytics platform Glassnode.
The analytics platform recently reported that, based on their short-term holder (STH) cost basis model, the next major resistance level for Bitcoin is projected to be below $140,000.
The STH cost basis model is a metric used to estimate the average price at which short-term Bitcoin holders acquired their coins. This metric is valuable for identifying potential entry and exit points for investors.
Glassnode emphasizes that, if current momentum persists, the next crucial resistance level for Bitcoin lies at the +2 standard deviation band, currently trading around $136,000.
While Glassnode sees the potential for Bitcoin to continue its upward trajectory, they also caution that the cryptocurrency could be nearing a near-term top as short-term holders are currently holding significant unrealized profits.
The platform noted, “Bitcoin has broken to new all-time highs and has cleared above two major accumulation zones. This represents a significant market move, typically followed by strong positive momentum. However, short-term holders, being more price-sensitive, are now seeing their unrealized profits reaching marginally overheated levels, increasing the likelihood of them selling and taking profit.”
Glassnode also highlighted that the percentage of short-term holder supply of Bitcoin in profit currently stands at 95%, which is seven percentage points above the long-term average of 88%. If this metric stabilizes or decreases below the 88% level, it could indicate weakening demand or distribution taking hold.
At the time of writing, Bitcoin is trading at $117,810.
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