A recent report from the on-chain analytics firm Glassnode has highlighted a key Bitcoin price region that could prove vital for bullish investors. This analysis offers crucial insights into the dynamics affecting Bitcoin’s market movement.
Several Key Bitcoin Metrics Are Pointing At The Same Price Range Right Now
In its latest weekly report, Glassnode explored the Bitcoin investor cost basis from multiple perspectives. One of the primary indicators discussed is the UTXO Realized Price Distribution (URPD), which provides insights into how the Bitcoin supply is distributed across different price levels based on transaction values.
Before the recent price crash, the URPD metric revealed that there were very few coins acquired between the $70,000 and $92,000 price range. This area is critical in on-chain analysis as investor cost basis often influences market behaviors. Historically, holders are more inclined to make transactions when their profit-loss status is at risk. Since only a small portion of the supply was acquired within this range, it represented an “air-gap” which could affect future demand.
This may explain Bitcoin’s rapid descent into this region once the crash occurred. Nevertheless, the bulls have shown resilience by stepping in and purchasing in this previously vacant area, thereby adjusting the URPD.
The chart illustrates the impact of these purchases, suggesting that this price segment is now better positioned to act as support compared to its previous state, although it remains less populated compared to other Bitcoin cost basis centers.
Another significant indicator highlighted by Glassnode is the Realized Price of short-term holders. This metric reflects the cost basis of average investors who bought Bitcoin within the last 155 days.
According to the analytics firm, the Short-Term Holder cost basis has historically served as a key reference level in bull markets. The calculated ±1σ bands of this cost-basis typically delineate upper and lower bounds for price movements. Currently, the lower limit is set at $71,000, coinciding with the aforementioned air-gap.
Moreover, this significant level is corroborated by the Active Realized Price metric, which considers the entire Bitcoin network but excludes supply that is unlikely to return to circulation.
The Active Realized Price stands at $70,000, closely aligning with the levels identified by the other indicators. Glassnode concludes, “With significant confluence across several key cost basis metrics, this price region becomes an area of interest, possibly serving as the final defense line for the bulls in the event of complete capitulation.”
BTC Price
As of the time of writing, Bitcoin is priced around $90,000, reflecting an increase of nearly 5% over the past week.
