Skip to main content

On-Chain Data Signals Bitcoin Correction Ahead: Here Are 2 Levels To Watch

Bitcoin has returned above $104,000 following a rather turbulent trading week. As a matter over a GOP tax bill morphed into a major fallout between US President Donald Trump and the world’s richest man Elon Musk, the crypto market experienced significant levels of outflows with Bitcoin prices dipping as low as $101,000 on Thursday. While there has been a modest price rebound in the last 24 hours, the maiden cryptocurrency remains in danger of a price deeper correction.

Bitcoin Bulls Eye Support Near $103,700 And $95,600

In an X post on Friday, analytics company Glassnode shared a potentially impactful on-chain data insight on the BTC market amidst a price correction that has lasted over the past two weeks. During this time, Bitcoin prices have dipped from its current all-time high of $111,970 to its recent low of $100,516. Presently, Glassnode explains that BTC long-term holders are slowly offloading their holdings with the absence of a clear positive market catalyst indicating that the present price correction might persist for the short-term. In such a scenario, the analytics firm has identified two potential support zones using the Work of Cost (WOC) price model.

Bitcoin

For context, the WOC price model by measures Bitcoin value on cost basis by tracking the acquisition price for currently circulating coins. The WOC displays BTC supply in Spendable Supply Distribution (SSD) or Cost Basis Distribution (CBD) quantiles which reflects the distribution of coin acquisition prices. If Bitcoin’ price correction persists, Glassnode’s WOC indicates the next major support lies at the $103,700 which aligns with the 0.95 SSD quantile i.e. the price at which 95% of circulating (spendable) bitcoin have a lower acquisition price meaning only 5% of Bitcoin supply was bought higher than this price point. If selling pressure proves overwhelming at this first support level, Bitcoin is expected to hit its next price floor at the 0.85 SSD quantile around the $96,500 indicating a potential price decline of 7.2% from current market prices and 13.8% from BTC’s market high. Interestingly, this projected price drawdown still falls within a healthy correction range within a broader bull rally. Nevertheless, the bull rally must soon discover a positive market rally rather in the form of marco quantitative easing, increased institutional investments or ETF inflows among others.

BTC Market Overview

At the time of writing, Bitcoin is trading at $104,418 reflecting a 2.98% price gain in the last 24 hours. Meanwhile, the asset’s daily trading volume has dipped by 20.02% and is valued at $51.67 billion.

Bitcoin

from Bitcoinist.com https://ift.tt/a5NdA1z
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more