The new GlassNode report revealed that $141,000 could become Bitcoin’s next major resistance if prices are compellingly high.
Bitcoin is currently trading between these two STH price ranges
In its latest weekly report, on-chain analytics firm GlassNode discusses short-term holder (STH) cost bases and derived price ranges.
This indicator, as its name suggests, measures the cost base or acquisition level of the average investor portion of the STH cohort. Officially, STH is defined as an investor holding a coin for less than 155 days.
The group consists of new entrants and high frequency traders in the network. In other words, it represents the low conviction aspect of the market. A cohort called the Long-Term Holder (LTH) group (retention times greater than 155 days) corresponds to Hodlers of BTC.
If cryptocurrency prices are traded beyond the STH cost base, that means that the entire STH cohort is in a state of net unrealized profits. On the other hand, the value of assets under the metric suggests the control of losses between cohorts.
Historically, the STH cost base has served as an important boundary between local bullish and bearish trends. Below is a chart shared by analytics companies. This chart shows that aspects are currently trading.
As shown in the graph, Bitcoin prices broke the STH cost base at the beginning of the year, and then acquired a significant amount of distance. The current metric value is $105,400, with the latest BTC price, with STH sitting at 11.5% net profit. “You can apply standard deviation bands to the STH cost base to add statistical context,” the report explains. “These dynamic price ranges help us identify areas where trend fatigue or breakouts are possible.”
From the charts, BTC discovers resistance multiple times in this cycle with a +1 standard deviation (SD) band, with two refusals repeating two refusals with bullish pushes only for the past few months.
Currently, this level is $125,100. “From a broader perspective, this suggests that Bitcoin could remain in the range between $105,000 and $125,000 until a critical breakout occurs,” GlassNode said.
What happens if a breakout occurs? According to the analytics company, the +2 SD level, located at $141,600, could instead become the next major area of resistance. At this level, STH’s profits would have been significantly increased. Large volume sales It arises from the motivation to earn profits.
BTC price
Bitcoin has been consolidating within that range recently, as its prices still trade at around $117,600.
Dall-E, Glassnode.com featured images, tradingView.com charts