Bitcoin drops below 0.95 cost basis quantile, signaling potential risk: Glassnode

Key Takeaways

• Bitcoin fell below the 0.95 Cost Basis Quantile, a level linked to profit-taking activity.
• Remaining below this threshold may increase downside risk for Bitcoin, with key support between $105,000 and $90,000.

Bitcoin fell below the 0.95 Cost Basis Quantile today, entering a zone typically associated with profit-taking activity, according to data from blockchain analytics firm Glassnode.

A failure to reclaim this threshold could see Bitcoin test lower support levels between $105,000 and $90,000. However, successfully moving back above the 0.95 Cost Basis Quantile would indicate renewed market strength.

The Cost Basis Quantile serves as a key metric for gauging market risk levels and potential price action zones for the leading digital asset.