Bitcoin at the Crossroads: The cost base of $97,000 is key to the next breakthrough
After a huge price drop triggered by macroeconomic pressure, the price of Bitcoin has returned over $105,000 in the past 24 hours. It is worth noting that U.S. President Donald Trump and former political ally Elon Musk have participated in the public quarrel, which has caused people to volatility in the cryptocurrency market that is already in the correction phase.
Amid some level of update stability over the past two days, popular analytics firm GlassNode has now shared an important on-chain analysis highlighting the key price levels of the Bitcoin market at present.
With the $114K and $83K levels in traders’ eyes, Bitcoin is ready to break through
In a June 7 X post, GlassNode uses the Short-term Holder (STH) Cost Base Model (work derived from the Cost (WOC) Price Framework) to provide insights into potential Bitcoin price action. As the name implies, the STH cost base represents the average purchase price of all coins belonging to short-term holders, i.e. investors who have acquired Bitcoin within the last 155 days.
The STH cost basis is an important market indicator as it reflects the risks of new market participants who are usually the most reactive to price changes. This is also a powerful indicator of market sentiment, with the ability to act as resistance or support according to the price direction.
According to GlassNode, the current Bitcoin STH cost base is estimated at $97,100. Using the standard deviation band in this WOC model, GlassNode further determined the price level of $114,800 as the +1STD level and potentially heated market area on this cost basis.
Given the price of Bitcoin, this $114,800 price zone represents the next major resistance, which is expected to trigger huge buying pressure and push the Prime Minister’s cryptocurrency further into unknown price areas.
GlassNode’s WOC model also identifies $83,200 at the -1STD level to represent the key support zones in the current bullish structure. A decisive price below this level will indicate a market weakness and may lead to a series of liquidation and further price corrections.
Bitcoin Price Overview
At the time of writing, Bitcoin is trading at $105,745, reflecting a 1.07% increase in the past 24 hours. Meanwhile, the daily trading volume of assets fell by 34.27% to be worth $38.66 billion. Bust Coin continues to consolidate beyond the STH cost base at $97,100, with an effective opportunity to be bullish resistance at $114,800.
However, the loss of $97,100 in key support will point to a retest of $83,200, which has strong potential bearish consequences.
