Bitcoin (BTC) has reclaimed the $105,000 level after experiencing significant volatility, with key technical levels now determining its next major move. As analysts eye a potential push to $120,000, on-chain metrics reveal critical support and resistance zones that could define BTC’s short-term trajectory.
Market Overview: Short-Term Holder Cost Basis in Focus
According to recent analysis from Glassnode, Bitcoin’s Short-Term Holder (STH) cost basis currently sits at $97,100 – a crucial level that could determine whether bulls or bears take control of the market. This metric, derived from the Work of Cost (WOC) framework, represents the average purchase price for investors who acquired BTC within the past 155 days.
Key Price Levels to Watch
The technical analysis reveals three critical price zones:
- Resistance: $114,800 – The +1 standard deviation level that could trigger significant buying pressure if breached
- Current STH Base: $97,100 – The key support level that must hold to maintain bullish momentum
- Critical Support: $83,200 – The -1 standard deviation level where a break below could spark cascading liquidations
Market Catalysts and Recent Events
Recent market volatility has been amplified by macroeconomic factors and high-profile developments, including:
- Public disagreement between former allies Donald Trump and Elon Musk
- Increased institutional interest in cryptocurrency markets
- Shifting retail sentiment amid price consolidation
Technical Outlook and Trading Volume
Bitcoin currently trades at $105,745, showing a modest 1.07% gain over 24 hours. Trading volume has decreased by 34.27% to $38.66 billion, suggesting a period of consolidation. While whales continue to accumulate at these levels, retail traders remain cautious about potential market direction.
FAQ Section
What is the Short-Term Holder cost basis?
The STH cost basis represents the average purchase price of Bitcoin for investors who bought within the last 155 days. It’s a key metric for gauging market sentiment and potential support/resistance levels.
Why is the $97,100 level significant?
This price point represents the current STH cost basis and serves as a crucial psychological and technical support level. A sustained break below could trigger increased selling pressure.
What could trigger a move to $114,800?
A combination of sustained buying pressure, positive market sentiment, and a break above current resistance levels could propel Bitcoin toward this target.
