Bitcoin has returned above $105,000 in the past 24 hours after a sharp price fall on Thursday due to macroeconomic pressures. Notably, U.S. President Donald Trump and former political ally Elon Musk have engaged in a public spat that has increased volatility in the crypto market, which has already undergone a correction phase.
In the context of prices showing signs of stabilizing over the past two days, the renowned analysis company Glassnode has now shared an important chain analysis highlighting the current key price levels in the Bitcoin market.
Bitcoin Ready to Break Through as Traders Keep an Eye on Levels $114K and $83K
In a post on X on June 7, Glassnode provided insights into the potential Bitcoin price action by using the cost basis model of Short-term Holders (STH), derived from the Price Framework of Cost (WOC). As the name suggests, the STH cost basis represents the average purchase price of all coins held by short-term holders, i.e., investors who purchased their Bitcoin within the last 155 days.
The STH cost basis is an important market indicator as it reflects the risk appetite of new market participants, who often react the most to price changes. It is also a strong indicator of market sentiment with the ability to act as a resistance or support level depending on the price direction.
According to data from Glassnode, the current STH cost basis of Bitcoin is estimated to be $97,100. Using standard deviation bands in this WOC model, Glassnode further identified a price level of $114,800 as the +1STD of this cost basis and as a potential hot market area.
Considering the price of Bitcoin, this price range of $114,800 represents the next major resistance level. If this level is surpassed, it is expected to create significant buying pressure and push this leading cryptocurrency further into uncharted price territory.
Glassnode's WOC model also identifies the -1STD level at $83,200 to indicate a critical support zone in the current bullish structure. A sharp price drop below this level would signal weakness in the market and could potentially trigger a series of liquidations and subsequent price adjustments.
Overview of Bitcoin price
At the time of writing, Bitcoin is trading at $105,745, reflecting a 1.07% increase in the past 24 hours. Meanwhile, the daily trading volume of this asset has decreased by 34.27% and is valued at $38.66 billion. Given that Bitcoin continues to consolidate above the STH cost basis of $97,100, there is a valid opportunity for a bullish market towards the resistance level of $114,800.
However, losing the important support level at $97,100 will lead to a retest at $83,200, posing a risk of strong bearish consequences.
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Bitcoin is at a crossroads: The base price of $97,000 plays a key role for the next breakout.
Bitcoin has returned above $105,000 in the past 24 hours after a sharp price fall on Thursday due to macroeconomic pressures. Notably, U.S. President Donald Trump and former political ally Elon Musk have engaged in a public spat that has increased volatility in the crypto market, which has already undergone a correction phase. In the context of prices showing signs of stabilizing over the past two days, the renowned analysis company Glassnode has now shared an important chain analysis highlighting the current key price levels in the Bitcoin market. Bitcoin Ready to Break Through as Traders Keep an Eye on Levels $114K and $83K In a post on X on June 7, Glassnode provided insights into the potential Bitcoin price action by using the cost basis model of Short-term Holders (STH), derived from the Price Framework of Cost (WOC). As the name suggests, the STH cost basis represents the average purchase price of all coins held by short-term holders, i.e., investors who purchased their Bitcoin within the last 155 days. The STH cost basis is an important market indicator as it reflects the risk appetite of new market participants, who often react the most to price changes. It is also a strong indicator of market sentiment with the ability to act as a resistance or support level depending on the price direction.
According to data from Glassnode, the current STH cost basis of Bitcoin is estimated to be $97,100. Using standard deviation bands in this WOC model, Glassnode further identified a price level of $114,800 as the +1STD of this cost basis and as a potential hot market area. Considering the price of Bitcoin, this price range of $114,800 represents the next major resistance level. If this level is surpassed, it is expected to create significant buying pressure and push this leading cryptocurrency further into uncharted price territory. Glassnode's WOC model also identifies the -1STD level at $83,200 to indicate a critical support zone in the current bullish structure. A sharp price drop below this level would signal weakness in the market and could potentially trigger a series of liquidations and subsequent price adjustments. Overview of Bitcoin price At the time of writing, Bitcoin is trading at $105,745, reflecting a 1.07% increase in the past 24 hours. Meanwhile, the daily trading volume of this asset has decreased by 34.27% and is valued at $38.66 billion. Given that Bitcoin continues to consolidate above the STH cost basis of $97,100, there is a valid opportunity for a bullish market towards the resistance level of $114,800.
However, losing the important support level at $97,100 will lead to a retest at $83,200, posing a risk of strong bearish consequences.