Glassnode Researchers Identify Key Support Levels for BTC Using New Metric
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Johny Smith
2024/12/21
3 mins read
The Bitcoin (BTC) price briefly rose above the historical level of $100,000, but rolled back. Experts are wondering where the correction will stop. A new tool from Glassnode, Cost Basis Distribution (CBD), helps analyze points of accumulation and distribution of coins among investors. This can shed light on key support and resistance levels.
CBD is a heat map that shows how many Bitcoins were purchased by investors in different price ranges. This analysis allows us to understand at what levels the main volumes are concentrated. For example, in the $39,000 to $40,000 range, 322k BTC were purchased over the past year, making it the largest accumulation area.
However, below $88,000 there is a noticeable gap in liquidity – a minimal number of transactions took place here. If the price returns to these levels, the market may experience increased volatility due to weak support. According to experts, over the past 3 months, the $62,000 to $64,000 range has become an important accumulation cluster. During this period, investors actively consolidated positions before the start of a new bullish rally. Such levels now serve as an important area of demand and support for further growth.
Over the past month, the $96,000 to $98,000 range has also become a key zone where over 101k BTC has been accumulated. At the same time, there is resistance above the $98,000 mark – about 81 thousand coins were bought here. If Bitcoin falls below $96,000, it could create additional risks due to the lack of significant activity.
CBD is more than a price-volume analysis, analysts say. The tool allows you to find clusters of accumulation, resistance and changes in investor sentiment. Using this data, traders can more accurately identify critical levels for decision making.
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