Bitcoin’s price action is under intense scrutiny as new data reveals critical support and resistance levels driven by short-term holders (STHs). Will Bitcoin face a 7% correction or break past $140K? Here’s what Glassnode’s latest analysis reveals.
Bitcoin News: STH Cost Basis and Market Dynamics
Glassnode’s “The Week Onchain” report highlights how short-term holders (STHs)—those holding Bitcoin for up to 155 days—are shaping near-term price movements. Key findings include:
- Support Zone: A “cost basis gap” between $110K and $115K could trigger a 7% pullback.
- Resistance Level: The $140K mark aligns with the +2σ band, where profit-taking may intensify.
- STH Behavior: Their aggregated purchase prices create a “ladder” of support and resistance levels.
Bitcoin Correction Risk: Will $110K Hold?
The $110K–$115K range lacks historical accumulation, making it a potential target for gap-filling. If Bitcoin retests this zone, it could offer a buying opportunity for STHs.
Bitcoin Resistance at $140K: A Breakout or Rejection?
A surge past $140K may face strong selling pressure from STHs looking to lock in profits. Glassnode’s standard deviation analysis suggests this level is a critical resistance zone.
Actionable Insights for Bitcoin Traders
Traders should monitor:
- STH Cost Basis: Watch for accumulation or distribution near $110K and $140K.
- Market Sentiment: Profit-taking could cap gains, while a dip may attract buyers.
Conclusion: Navigating Bitcoin’s Next Move
Bitcoin’s price trajectory hinges on STH behavior, with $110K support and $140K resistance as key levels. Traders must stay alert to on-chain signals and market dynamics.
FAQs
Q: What is STH cost basis?
A: It’s the average purchase price of Bitcoin held by short-term investors (up to 155 days), which often acts as support or resistance.
Q: Why is $110K a critical support level?
A: The $110K–$115K range has limited historical trading activity, making it a likely target for price corrections.
Q: What happens if Bitcoin breaks $140K?
A: Profit-taking by STHs could slow further gains, creating resistance at this level.
Q: How reliable is Glassnode’s analysis?
A: Glassnode’s on-chain data provides actionable insights but should be combined with other indicators for trading decisions.
