Bitcoin’s price action is at a critical juncture, with short-term holders (STHs) playing a pivotal role in shaping its near-term trajectory. According to Glassnode’s latest analysis, the STH cost basis could drive a 7% correction, testing $110K support, while $140K resistance looms as a potential profit-taking zone. Here’s what traders need to know.
Bitcoin News: STH Cost Basis and Its Market Impact
Short-term holders (STHs), defined as investors holding Bitcoin for up to 155 days, are currently influencing price dynamics. Glassnode’s data reveals a “cost basis gap” between $115K and $110K, a zone with limited trading activity during Bitcoin’s recent rally. This gap could trigger a 7% pullback to $110K as the market seeks equilibrium.
Bitcoin Correction Risk: Key Support and Resistance Levels
- Support at $110K: A retest of this level could attract buying interest from STHs.
- Resistance at $140K: The +2σ band in cost basis distribution suggests strong selling pressure here.
- STH Profit-Taking: A breakout above $140K may trigger rapid selling, capping upside momentum.
Bitcoin Support and Resistance: What Traders Should Watch
Glassnode’s analysis highlights the gravitational pull of cost basis distribution. The $110K–$115K gap, if filled, could stabilize prices, while a surge past $140K may face stiff resistance. Traders should monitor STH accumulation and distribution patterns for clues on next moves.
Actionable Insights for Bitcoin Investors
For traders, the current setup offers two scenarios:
- A dip to $110K could present a buying opportunity.
- A rally to $140K may signal a profit-taking zone.
Balancing risk and reward is crucial in this volatile market.
Conclusion: Navigating Bitcoin’s Next Move
Bitcoin’s price action hinges on STH behavior, with $110K support and $140K resistance as critical levels. Traders should stay vigilant, using on-chain data to guide decisions in this dynamic market.
Frequently Asked Questions (FAQs)
1. What is STH cost basis?
STH cost basis refers to the average purchase price of Bitcoin held by short-term investors (up to 155 days). It often acts as support or resistance.
2. Why is $110K a key support level?
The $110K–$115K range has a “cost basis gap,” making it a likely target for price retracement.
3. What happens if Bitcoin breaks $140K?
STHs may take profits at this level, creating selling pressure and potentially limiting further gains.
4. How reliable is Glassnode’s analysis?
Glassnode’s on-chain data provides valuable insights, but market conditions can change rapidly.
