Bitcoin Has Not Yet Hit Seller ‘Exhaustion’

The following are key points.

• Glassnode has found that bitcoin is currently in the middle a textbook corrective phase following all-time heights.

• BTC must fall to nearly $104,000 for the correction to be attributed to exhaustion of sellers.

• BTC’s current price range is a good place for short-term traders to make significant gains.

BitcoinBTCClassic. “post euphoria consolidation” According to a new study, the amount of money that will be spent on upcoming projects could reach $104,000.

This week’s edition of the “The Week OnchainGlassnode, a crypto-analytics firm, confirmed that the BTC rate has increased. “consolidation corridor.”

Bitcoins profit “quantiles” In Focus

Bitcoin continues to be a source of concern for those who think that the bull market should have already returned.

BTC/USD has been stuck at a 10% to 15% range below its highest level, as gold and risk assets continue their upward trend. most recent all-time high From August

“Since the mid-August all-time high, Bitcoin has entered a volatile downtrend, declining to $108k before bouncing back toward $112k,” Glassnode summarizes.

“With volatility rising, the central question is whether this marks the start of a true bear market or simply a short-term contraction.”

Researchers looked at how the BTC active supply was priced last, and divided it up into different categories. “quantiles.”

It is worth noting that the 0.95 quantile corresponds to a price where 95% of supply makes a profit.

“At present, the price trades between the 0.85 and 0.95 quantile cost basis, or in the $104.1k–$114.3k range. Historically, this zone has acted as a consolidation corridor following euphoric peaks, often leading to a choppy sideways market,” What The Week Onchain Explains 

“Therefore, breaking below $104.1k would replay the post-ATH exhaustion phases seen earlier in this cycle, whereas a recovery above $114.3k would signal demand finding its footing and reclaiming control of the trend.”

Glassnode notes the August trip marked Bitcoin’s 3rd euphoric upward trend within the current bull-market, and such movements are not sustainable for long periods.

The speculators are bouncing between the black and red

The aggregate level of buy-in for Bitcoin investors, or short-termholders (STH), is another key price.

Related: Bitcoin long-term holders offload 241,000 BTC: Is sub-$100K BTC next?

These wallets can be defined as entities that have been hoarding for up six months. traditionally prop up price During bull market corrections. 

Glassnode does note, however, the fact that STH profits can fluctuate quickly in a price range.

“The percentage of short-term holder supply in profit provides a clear lens on this dynamic,” It continues. 

“With the leg down to $108k, their share in profit collapsed from above 90% to just 42%, a textbook cooling-off from an overheated state to a zone of sudden stress.”

STHs can react suddenly Their profitability turning negative while becoming quickly exhausted by selling at a profit, allowing for the market to rebound.

“This pattern explains the recent rebound from $108k back to $112k,” Glassnode updates on the BTC market.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.