Key Takeaways
A comprehensive analysis by Glassnode has identified the $70,000-$71,000 range as a crucial support zone for Bitcoin, with multiple on-chain metrics converging at this critical level. This price region could prove to be the bulls’ final defense line in case of a market downturn.
Multiple Indicators Point to Critical Support Level
According to Glassnode’s latest report, three key metrics are highlighting the importance of the $70,000-$71,000 price range:
- UTXO Realized Price Distribution (URPD)
- Short-term Holder Cost Basis
- Active Realized Price
Understanding the Support Zone
The URPD analysis reveals an interesting ‘air-gap’ phenomenon between $70,000 and $92,000, where relatively few coins have their cost basis. While this initially represented a vulnerability, recent buying activity has strengthened this zone as a potential support level.
The Short-term Holder (STH) cost basis, particularly its lower bound (one standard deviation below), sits at $71,000. This metric has historically served as a reliable reference point during bull market trends. Recent analysis suggests this could be a springboard for Bitcoin’s push toward $150K.
Market Implications
The Active Realized Price, currently at $70,000, provides additional confirmation of this support zone’s significance. This metric excludes inactive supply, offering a more accurate picture of economically relevant Bitcoin holdings.
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Current Market Status
Bitcoin is currently trading at $90,000, showing resilience with a 5% weekly gain. The convergence of multiple support indicators at the $70,000-$71,000 range suggests this zone could be crucial for maintaining bullish momentum.
Source: Glassnode