Glassnode Pinpoints Key Bitcoin Support Level
If Bitcoin bulls fail to maintain the present price level, market analysis firm Glassnode has pinpointed the next crucial support level to monitor.
According to Glassnode’s latest analysis, Bitcoin is trading within a precarious zone, currently around $96,788. The report highlights that a drop below $96,000 could lead to a significant price decline due to limited support below this point.
Key Bitcoin Support Zones: $80.1K and $71K
Glassnode’s report emphasized Bitcoin’s adjusted MVRV Z-Score as a tool to identify potential price support areas for traders.
#Bitcoin’s adjusted MVRV Z-Score can be used to approximate areas of critical price support. So far price has held near the mean level of $96.3K. If prices break lower, the next major line of defense for bulls may be found at -1.5σ level ($80.1K): https://t.co/jwSxMmYW4i pic.twitter.com/fXLOrWjhw1
— glassnode (@glassnode) February 17, 2025
The analytics firm observed that Bitcoin has been holding around the $96.3K mean level, a vital point for market stability. Glassnode suggests that if this level breaks down, the subsequent major support for buyers could be at the -1.5 standard deviation (σ) level, around $80.1K.
Bitcoin last traded around the $80,000 mark in mid-November 2024, during a broad market surge fueled by Donald Trump’s influence. Since then, Bitcoin has maintained levels above $80K, demonstrating strength even as it climbed towards $89,164 in January 2025.
However, Glassnode analysts suggest that a fall below the $96K support could trigger a retest of the $80K level. The firm also highlighted the importance of short-term holders (STHs), whose average cost basis is $92.2K, as a crucial level to uphold the current bullish momentum.
Bitcoin Short-Term On-chain Cost Basis | Glassnode
In addition, the ±1σ bands, ranging from $71K to $131K, typically define Bitcoin’s price range. As Bitcoin remains within these bands, buyers still have some influence, but recent price action is testing their strength.
Furthermore, a significant concern arises from the URPD volume profile, which, according to Glassnode’s analysis, points to a lack of liquidity beneath the current support level.
The limited trading volume in this lower range suggests that a move into this zone could accelerate the downward pressure. The -1σ level for STH cost basis, at $71K, is situated at the upper end of this low-liquidity area, making it a critical level if Bitcoin’s price declines further.
Entity-Adjusted URPD | Glassnode
Bitcoin Navigates Between Demand and Supply Zones
Simultaneously, market analyst Ali Martinez recently noted Bitcoin’s position between substantial demand and supply zones. A strong demand zone exists between $94,660 and $97,540, where approximately 1.43 million BTC were bought.
#Bitcoin is trapped between key levels, with a 1.43 million #BTC demand wall between $94,660 and $97,540, and a 1.16 million $BTC supply wall between $97,650 and $99,470. A breakout in either direction could set the trend! pic.twitter.com/zHZpDuFLBx
— Ali (@ali_charts) February 15, 2025
He also identified a supply zone between $97,650 and $99,470, encompassing around 1.16 million BTC. Martinez suggests that a breakout from this range in either direction could determine the upcoming market trend.
In a prior analysis, Martinez had pointed out a resistance level at $97,530, which Bitcoin has since surpassed and is attempting to turn into support. He warned that below $92,110, support weakens considerably, with a substantial gap extending from $90K to $70K. This aligns with Glassnode’s warning that failure to hold current levels may lead to more pronounced price corrections.
Demand for Bitcoin Remains Robust
Despite the recent sideways price action, on-chain analyst Darkfost indicated that Bitcoin demand is still strong. He highlighted the 30-day moving average (DMA) of the exchange inflow/outflow ratio as a positive sign.
A ratio below 1 suggests that more Bitcoin is being withdrawn from exchanges than deposited, often signaling accumulation. Even with Bitcoin fluctuating between $90K and $105K, continued outflows demonstrate ongoing strong demand.
Bitcoin Exchange Inflow|Outflow | CryptoQuant
Historically, such patterns have often preceded short-term price increases. However, Darkfost cautions that some of these outflows might be routine transfers from exchanges to institutional or custodial wallets.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
