Bitcoin Hits $100K Briefly Before Retracing: CBD Metric Reveals Key Levels

Multiple analyses have identified the most important Bitcoin levels to watch as investors anticipate the end of the ongoing retracement.Bitcoin (BTC) recently saw dramatic price action, briefly surpassing $100,000 before dropping to $92,000 and then stabilizing around $98,000. The volatility has prompted analyses to identify price levels likely to influence its trajectory in the coming weeks. Key Bitcoin Accumulation and Liquidity ZonesMarket analytics firm Glassnode introduced its Cost Basis Distribution (CBD) metric, which analyzes Bitcoin supply while considering investors average cost basis. The chart shows major accumulation and distribution zones that could act as support or resistance levels.

Bitcoin CBD | Glassnode

Glassnode analysts confirmed that the $39,000$40,000 range saw the highest accumulation in the past year, with 322,000 BTC purchased. However, they also flagged a liquidity gap below $88,000, where minimal Bitcoin changed hands. This lack of trading activity could amplify volatility if Bitcoin retraces to this level. Further, the $62,000$64,000 range is another major accumulation zone, which served as a foundation for Bitcoins rally past $100,000. More recently, the $96,000$98,000 range emerged as an important support zone, with over 101,000 BTC accumulated in the last month. Meanwhile, approximately 81,000 BTC were acquired above $98,000, forming a short-term resistance level.

Glassnode

Analysts Identify Major Bitcoin LevelsNotably, market analyst Doctor Profit also pointed out Bitcoins recent descent to $90,000 before rebounding in a report today. https://twitter.com/DrProfitCrypto/status/1865021394574078326He expects the industry firstborn to trade within a range between $90,000 and $110,000 through the end of the year. According to him, this range will define Bitcoin's next major price movement, as traders look for confirmation of long-term bullish momentum. Meanwhile, veteran analyst Michaël van de Poppe highlighted the heightened volatility following Bitcoins recent push above $100,000. He attributed the sharp pullback to liquidations and stop-loss triggers as the market sought to rebalance. Van de Poppe believes that the $96,000$97,000 range is extremely important. A drop below this level could trigger a more severe flash crash, exacerbating pain for traders on the long side. BTC Needs to Breach $100,000 AgainDespite the recent volatility, he remains optimistic, predicting that a successful break above $100,000 will reignite bullish momentum and push Bitcoin toward higher highs. https://twitter.com/CryptoMichNL/status/1864944362087428425In addition, he noted that altcoins have shown resilience during Bitcoin's latest retracement. This stability could set the stage for an altcoin rally if Bitcoin consolidates in the current range. Generally, investors should watch Bitcoins behavior around the $96,000$98,000 range. This zone is a major support area, while resistance above $98,000 could cap upward momentum in the short term. Below $96,000, there is limited trading activity, which could lead to heightened volatility. Meanwhile, a sustained breakout above $100,000 could mark the start of a new bull phase, especially if liquidity stabilizes. At press time, Bitcoin trades for $98,723, up 1.57% today.

Text source: The Crypto Basic

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