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The cryptocurrency market has experienced selling in the last 24 hours. Amid this, a recent analysis from Glassnode reveals a critical Bitcoin price zone that traders should keep an eye on.
Bitcoin rose to an all-time high of $109,114 on Monday before falling back. At the time of writing, BTC was down 4.41% to $102,850. Most other digital assets also wavered.
The recent sell-off has wiped out leveraged crypto trading positions, liquidating about $576 million across various digital assets in the last 24 hours, according to CoinGlass data. Bullish bets on price increases worth over $407 million were liquidated during this period.
Amid the current uncertainty on the market, Glassnode highlights a crucial range that Bitcoin needs to hold to prevent major selling: the $90,000 to $95,000 range.
Tomiwabold OlajideAccording to Glassnode, since Bitcoin breached the $90,000 price point in November 2024, the $90,000 to $95,000 range has become a critical zone for BTC. Glassnode observed that whenever the Bitcoin price dips into this range, realized losses spike above $100 million per hour, which highlights the sensitivity of this price band, where sellers capitulate during corrections.
What other indicators reveal
In a recent analysis, CryptoQuant noted that the Short-Term Holder (STH) SOPR indicator has entered the negative zone, indicating that short-term holders are now selling their BTC at a loss.
Given this, two potential scenarios may unfold: first, they may choose not to realize their losses, with their realized price potentially acting as a strong support level, or they may sell, leading to a deeper market correction.
CryptoQuant highlighted that historically, when this metric turns negative, it might highlight attractive entry points for the long term.
According to Glassnode, the Difficulty Regression Model estimates the cost to mine 1 BTC at $33,900, while Bitcoin trades above $100,000. This three-time profitability margin showcases miners' resilience, even as mining difficulty continues to rise.
Meanwhile, Miner Revenue per Exahash, currently at $60,800, highlights the competitive nature of the Bitcoin mining landscape. As the hash rate climbs, miners earn less BTC per hash, squeezing revenues despite Bitcoin's strong price performance.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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