Insightful Crypto Analysis from Industry Experts
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Bitcoin Surges Past $104,000 Amid Market Fluctuations
After enduring a volatile trading week, Bitcoin has surpassed the $104,000 mark. The recent geopolitical tensions involving a GOP tax bill and a public altercation between US President Donald Trump and billionaire Elon Musk have led to significant market disruptions. As a result, the cryptocurrency market witnessed substantial outflows, causing Bitcoin’s price to plunge as low as $101,000 on Thursday. Although Bitcoin has experienced a moderate recovery over the past 24 hours, it remains vulnerable to further price corrections.
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Strategic Support Levels for Bitcoin: $103,700 and $95,600
In a recent analysis shared on X, Glassnode, a prominent analytics firm, provided crucial on-chain data insights into the Bitcoin market, highlighting a price correction that has persisted over the last two weeks. During this period, Bitcoin’s value fell from its historical peak of $111,970 to a recent low of $100,516. Glassnode notes that long-term BTC holders are gradually liquidating their holdings, in the absence of any significant positive market catalyst, suggesting the current price correction may continue in the short term.
Utilizing the Work of Cost (WOC) price model, Glassnode has identified two critical support levels. The WOC model evaluates Bitcoin’s value based on the acquisition cost of currently circulating coins. The model displays Bitcoin supply in Spendable Supply Distribution (SSD) or Cost Basis Distribution (CBD) quantiles, reflecting the distribution of coin acquisition costs. Should the price correction persist, Glassnode’s WOC model indicates that the next major support level is at $103,700, aligning with the 0.95 SSD quantile. This suggests that 95% of spendable Bitcoin was acquired at a lower price. If the selling pressure surpasses this level, Bitcoin might find its next price floor at the 0.85 SSD quantile, around $95,600. This scenario implies a potential price drop of approximately 7.2% from current levels and 13.8% from Bitcoin’s market high.
Interestingly, this anticipated price adjustment remains within a healthy corrective range amid a broader bullish trend. However, for the bullish momentum to sustain, the market requires a positive catalyst, possibly in the form of macroeconomic quantitative easing, increased institutional investments, or ETF inflows.
Current Bitcoin Market Landscape
As of now, Bitcoin is trading at $104,418, marking a 2.98% increase over the past 24 hours. In contrast, the daily trading volume has decreased by 20.02%, amounting to $51.67 billion. (Chart source: BTCUSDT chart on Tradingview.com)
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