Glassnode Reveals Level That Signals Turning Point in Bitcoin! “This Price Level Carries Six-Month Risk!”
Leading cryptocurrency Bitcoin has been trending lower lately, with analysts warning of further declines in the short term.
At this point, a critical warning came from crypto analysis company Glassnode. At this point, Glassnode stated that Bitcoin is at a critical point and claimed that if the price stays below a certain level, it could enter “bear territory.”
Accordingly, pointing to the cost base of short-term investors in Bitcoin, Glassnode stated that the cost price was $88,135.
Citing historical data, Glassnode said that Bitcoin could enter “bear territory” if the price remains persistent below $88,135:
“Bitcoin’s Short-Term Holding (STH) cost-based model is crucial for gauging sentiment among new investors. Historically, this model has tracked market lows during bull cycles and also separated bull markets from bear markets.
“BTC price is currently around 7% above its STH cost basis of $88,135. If the price sustains below this level, it could signal declining sentiment among new investors, which is typically a turning point in market trends and carries a risk of a bear market.”
Glassnode analysts pointed out that although there is a risk from short-term investors, the actions of long-term investors do not indicate that the bull market is over.
Noting that almost all long-term investors are currently in profit, analysts said, “Looking at past figures, periods when long-term investors experienced serious losses indicate the end of a cycle. However, this is not the case at the moment.”
*This is not investment advice.
