Bitcoin has navigated back above the $104,000 mark after a turbulent trading week. Fluctuations in the market were exacerbated by political tensions, particularly regarding a GOP tax bill that intensified a clash between U.S. President Donald Trump and tech mogul Elon Musk. Consequently, the cryptocurrency market saw significant outflows, with Bitcoin prices nosediving to a low of $101,000 earlier in the week. Although there was a slight rebound in the past 24 hours, concerns linger about a deeper price correction looming on the horizon.
Key Support Levels for Bitcoin: $103,700 and $95,600
In a recent X post, analytics firm Glassnode shed light on critical on-chain insights relating to Bitcoin. The analysis comes during a prolonged price correction that has seen Bitcoin tumble from an all-time high of $111,970 to a low of $100,516.
Currently, Glassnode reports that long-term BTC investors are gradually liquidating their assets amid an absence of clear, uplifting market signals. The firm has identified two notable support levels based on their Work of Cost (WOC) price model, indicating that the existing price correction could persist in the short term.
The WOC model measures Bitcoin’s value based on acquisition costs, tracking prices of coins currently in circulation. It quantifies BTC supply via Spendable Supply Distribution (SSD) and Cost Basis Distribution (CBD), which highlights how coins were obtained.
According to Glassnode’s findings, if Bitcoin continues on its downward trajectory, the first major support level appears to be at $103,700, aligning with the 0.95 SSD quantile; this signifies that 95% of circulation was acquired at lower prices, indicating only 5% of Bitcoin was purchased above this threshold.
Should the selling pressure continue to mount at this initial support level, the price could drop further to the next critical support at approximately $96,500—the 0.85 SSD quantile—implying a potential decline of about 7.2% from current prices and approximately 13.8% from Bitcoin’s recent peak.
Remarkably, this projected decline still lies within a healthy correction zone amid an overall bullish trend. To sustain the bull rally, however, positive market indicators such as macro quantitative easing, increased institutional investment, or a surge in ETF flows would be crucial.
Current BTC Market Landscape
As of this writing, Bitcoin is trading at $104,418, representing a 2.98% gain over the past 24 hours. However, the daily trading volume has decreased by 20.02%, now standing at $51.67 billion. Understanding these fluctuations and the surrounding dynamics is essential for anyone engaged in the cryptocurrency market, providing crucial insights into potential future movements.
