On-chain analytics firm Glassnode has revealed a Bitcoin price range that defines the current battleground between recent buyers and profit-takers.
Below is the chart shared by the analytics firm that shows the trend in this metric over the last few months.
As is visible in the graph, the CBD highlights two levels for holding a dense amount of the cryptocurrency’s supply (shaded in red). The lower of these levels is situated near $111,000. A large chunk of buying at this mark occurred during the recent bearish phase in the asset.
The other level is located around $117,000, made up of investors who bought during the price rally to the all-time high (ATH). Naturally, these buyers would be underwater right now, while those who purchased at $111,000 would be in profit.
Generally, holders are sensitive to retests of their cost basis and can show some kind of reaction during one. Since these two levels host the cost basis of a significant amount of investors, it’s possible that when BTC will revisit them, some panic selling or buying will crop up.
Which behavior would be dominant usually comes down to the market mood and the direction of the retest. When the retest occurs from above, investors may choose to buy more, believing the same cost basis level would result in profits again in the future. Similarly, holders who were in loss prior to the retest can react by selling, fearing that the asset will drop again in the future.
Considering these effects, the $111,000 may be considered a key support cushion for Bitcoin, while $117,000 a resistance barrier. “This range defines the current battleground between recent buyers and profit-takers,” noted Glassnode.
It now remains to be seen which level BTC will visit next and how its retest will go. “A break in either direction could set the tone for the next major move,” explained the analytics firm.
Bitcoin saw a retrace toward $113,500 earlier, but the coin has been quick to bounce back as its price has returned to $115,400.
