The price of Bitcoin is approaching a critical support area identified by Glassnode. This support range is between $95,500 and $97,000 and stands out as an important area that could determine Bitcoin's next direction.
This supply density is concentrated just below the average cost level of short-term investors, around $98,000. This creates a multi-layered support structure that will determine whether the price can rise or whether the downward pressure will strengthen.
According to Glassnode's assessment, 'The Bitcoin supply concentrated in this region is a critical area where investor confidence will be tested, and developments here will have significant effects on price movements.'
Critical Support Level for Bitcoin: Between $95,500 and $97,000
Glassnode's on-chain analyses reveal that a significant portion of Bitcoin supply is concentrated between $95,500 and $97,000. This level acts as a natural support point due to being a historical accumulation area where many investors bought Bitcoin. When the price approaches this area, it tests whether investors will sell or maintain and increase their positions. Typically, this situation helps increase buying pressure and keep the price stable. Monitoring this supply layer is critical for traders and investors who want to understand short-term price movements.
The Importance of Short-Term Investor Cost Basis in Market Dynamics
The average cost level for short-term investors is around $98,000. This figure represents the average purchase price of investors holding Bitcoin for less than 155 days. If Bitcoin continues to trade above this level, short-term investors remain profitable, reducing selling pressure while encouraging new purchases. Conversely, if the price falls below the cost basis, the likelihood of selling by affected investors increases, strengthening the downward pressure on the market. Therefore, the supply concentrated just below the $98,000 level serves as a layered and critical support for the market.
Possible Scenarios Based on On-Chain Data
In light of Glassnode's analyses, two fundamental market scenarios emerge based on Bitcoin's movements in this critical support range:
Persistent Price Above $97,000 - $98,000 Levels: If Bitcoin closes above these supply and cost areas, it indicates strong investor confidence and renewed bullish momentum. This situation may attract additional buyers to the market and support upward movement.
Sharp Drop Below $95,500 Level: A sharp break below this level indicates weakening support and increasing selling pressure. It can lead to panic and liquidations among short-term investors, accelerating the downward trend.
Combination of On-Chain Analyses and Traditional Technical Analysis
The on-chain data provided by Glassnode offers deep insights by directly tracking coin movements and investor behavior on the blockchain. When used alongside traditional price charts and volume-based technical analysis, it clarifies the market structure and turning points. This makes it possible to make more informed decisions and optimize risk management in the volatile crypto market.
Strategic Recommendations for Investors
The established support range of $95,500 - $97,000 provides significant clues to short-term cost basis investors. However, the effects of macroeconomic developments, regulatory news, and institutional movements on the market should not be overlooked. Investors:
They should closely monitor price movements in the range of $95,500 to $97,000, evaluating buying power or breakout signals in this area,
They should track permanent closures above $98,000, indicating the continuation of bullish momentum.
It will be beneficial to analyze on-chain data alongside technical indicators and fundamental news to create a holistic view of the market.
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