Bitcoin’s upward trend is still strong, according to crypto analytics firm Glassnode, but there’s a crucial caveat.
Strong Support, But a Potential Cliff
Glassnode’s Cost Basis Distribution (CBD) heatmap shows significant Bitcoin support between $93,000 and $100,000. This means many investors bought Bitcoin in this price range, and a drop below it could trigger widespread selling. If this support level breaks, a more significant price correction is likely.
Consolidation Phase: Slowing Down
Currently, Bitcoin shows signs of slowing down. Profitability and on-chain activity are both down, suggesting a consolidation phase. This means less volatility and lower investor engagement. A major price jump to new highs is unlikely until we see a renewed surge in activity and demand.
May’s High: A Bit Suspicious
Glassnode points out that Bitcoin’s May peak didn’t see a corresponding increase in trading volume. In fact, volume was lower than earlier in the current bull market, raising some questions about the sustainability of that price increase.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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