On-chain analytics firm Glassnode has explained how Bitcoin losing $108,500 could lead to a deeper correction, if the past pattern is to go by.
Below is the chart shared by Glassnode that shows the trend in the different Bitcoin supply quantiles over the last few years.
Bitcoin has already faced dips below this mark, so it’s possible that the coin may be at risk of losing the line. “Historically, failure to hold this threshold has signalled structural market weakness and often preceded deeper corrections toward the 0.75 quantile,” explained the analytics firm.
BTC last saw such a decline to the 0.75 quantile during the consolidation period in mid-2024. Currently, this level is equivalent to $97,500. It now remains to be seen whether the asset can maintain above the 0.85 quantile, and if not, whether a retest of the 0.75 quantile will take place.
This group is considered to represent the fragile side of the market, prone to making panic moves during times of volatility. With BTC dropping below the cost basis of the cohort, its members are now underwater. “Historically, this structure often precedes the onset of a mid-term bearish phase, as weaker hands begin to capitulate,” noted Glassnode.
Bitcoin hasn’t been able to sustain a recovery recently as its price is still trading around $109,100.
