Bitcoin has made a comeback, rising above $104,000 after a tumultuous trading week. The cryptocurrency market saw significant declines on Thursday, with Bitcoin dipping to around $101,000. This was largely fueled by a heated exchange between former President Donald Trump and Elon Musk regarding a GOP tax bill. While there have been some modest rebounds in the past day, concerns remain that Bitcoin could face a deeper correction.
Bitcoin Support Levels Hover Near $103,700 and $95,600
On Friday, GlassNode shared some insights based on recent on-chain data that could impact the BTC market. Over the last two weeks, Bitcoin has dropped from its all-time high of $111,970 to about $100,516.
Currently, GlassNode observes that long-term Bitcoin holders are beginning to sell off their assets due to a lack of clear positive indicators for the market. They used the Cost (WOC) pricing model to pinpoint two potential support levels. The WOC model essentially calculates Bitcoin’s value based on the acquisition prices of coins in circulation, showing how they are distributed.
If Bitcoin continues to face downward pressure, GlassNode suggests that the next significant support might be around $103,700. Should this initial level be breached due to overwhelming selling pressure, Bitcoin could drop further to about $96,500, indicating a potential decrease of 7.2% from its current price and 13.8% from its previous peak. It’s worth noting that this decrease might just represent a healthy correction in the context of a wider bull market. However, for the bulls to regain momentum, they will need some positive market developments, perhaps in the form of quantitative easing, increased institutional investment, or a surge in ETFs.
An Overview of the BTC Market
As of now, Bitcoin is trading at approximately $104,418, showing a 2.98% increase over the last day. However, daily trading volume has decreased by 20.02%, amounting to about $51.67 billion.
