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Bitcoin News: Navigating the $97,000 Cost Basis for Potential Breakouts
Bitcoin prices have soared above $105,000 in the last 24 hours after a sharp downturn on Thursday, influenced by global economic dynamics. Notably, a public disagreement between US President Donald Trump and Elon Musk intensified market fluctuations during a period of correction in the cryptocurrency sector. Following some stabilization, leading analytics firm Glassnode has released crucial on-chain analysis pinpointing significant price levels for Bitcoin.
Key Insights from Glassnode’s Analysis
On June 7, Glassnode unveiled insights into potential Bitcoin price movements based on the Short-Term Holder (STH) cost basis model, part of their Work of Cost (WOC) pricing framework. The STH cost basis, which tracks the average purchase price of Bitcoin bought within the last 155 days, serves as a vital indicator of newer investors’ risk tolerance and overall market sentiment. It can either act as a support or resistance level, influencing the cryptocurrency’s price trajectory.
Currently, the STH cost basis is pegged at $97,100. Glassnode’s model uses standard deviation bands to outline significant price points, identifying $114,800 as a crucial resistance level within the +1STD band. Surpassing this threshold could trigger substantial buying activity, propelling Bitcoin into new price territories.
Conversely, the -1STD level at $83,200 is marked as a pivotal support zone. A drop below this mark could indicate market weakness, potentially leading to widespread liquidations and further price declines.
Market Outlook and Potential Scenarios
As of now, Bitcoin is trading at $105,745, marking a 1.07% increase over the past 24 hours, though its trading volume has decreased by 34.27% to $38.66 billion. If Bitcoin maintains its position above the $97,100 STH cost basis, the market might gear up for an upward push towards the $114,800 resistance. However, losing this critical support could see Bitcoin retesting the $83,200 level, which could have severe bearish implications.
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