Bitcoin has returned above $104,000 following a rather turbulent trading week. As a matter over a GOP tax bill morphed into a major fallout between US President Donald Trump and the world’s richest man Elon Musk, the crypto market experienced significant levels of outflows with Bitcoin prices dipping as low as $101,000 on Thursday. While there has been a modest price rebound in the last 24 hours, the maiden cryptocurrency remains in danger of a price deeper correction.
For context, the WOC price model by measures Bitcoin value on cost basis by tracking the acquisition price for currently circulating coins. The WOC displays BTC supply in Spendable Supply Distribution (SSD) or Cost Basis Distribution (CBD) quantiles which reflects the distribution of coin acquisition prices. If Bitcoin’ price correction persists, Glassnode’s WOC indicates the next major support lies at the $103,700 which aligns with the 0.95 SSD quantile i.e. the price at which 95% of circulating (spendable) bitcoin have a lower acquisition price meaning only 5% of Bitcoin supply was bought higher than this price point. If selling pressure proves overwhelming at this first support level, Bitcoin is expected to hit its next price floor at the 0.85 SSD quantile around the $96,500 indicating a potential price decline of 7.2% from current market prices and 13.8% from BTC’s market high. Interestingly, this projected price drawdown still falls within a healthy correction range within a broader bull rally. Nevertheless, the bull rally must soon discover a positive market rally rather in the form of marco quantitative easing, increased institutional investments or ETF inflows among others.
At the time of writing, Bitcoin is trading at $104,418 reflecting a 2.98% price gain in the last 24 hours. Meanwhile, the asset’s daily trading volume has dipped by 20.02% and is valued at $51.67 billion.
