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.
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.
Featured image from Biotron Foundation, chart from Tradingview
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