TL;DR
- Key Price Cluster Identified: Glassnode’s analysis shows that around 31,000 BTC was acquired at approximately $106,600, marking it as a significant cost basis level.
- Potential Support/Resistance Zone: With Bitcoin currently trading near $105,200, this level could serve as both a resistance if bulls push higher or a support during downturns.
- Investor Behavior Indicator: The resolute holding of these coins suggests that if Bitcoin nears $106,600, profit-taking or consolidation might ensue, impacting short-term market dynamics.
On-chain analytics firm Glassnode has recently turned the spotlight on a pivotal Bitcoin price level that traders and investors should keep a close eye on. According to its latest analysis, a significant cluster of Bitcoin was purchased at around $106,600 back on December 16.
The “Cost Basis Distribution” (CBD) indicator showcases the price point where a significant amount of Bitcoin’s supply was introduced to the market. As Bitcoin hovers around $105,200, this level is gaining interest as a possible conflict zone soon.
#BTC's price surge stalled just below $106.6K – a level with 31K $BTC held at that cost basis. This supply cluster originated on Dec 16 and remains unshaken. Holders haven’t redistributed, nor averaged down – making $106.6K an important level to watch in the short term. pic.twitter.com/f7rXqtP6qD
— glassnode (@glassnode) May 19, 2025
Glassnode’s data indicates that while the region near previous all-time highs hasn’t seen dense buying activity, the concentration at $106,600 stands out. It appears that many investors who acquired Bitcoin at that price level have held on through the volatility and market fluctuations that followed.
Their steadfast position could mean that should Bitcoin’s price approach this threshold again, these holders might be tempted to sell and recover their initial investments, thereby exerting downward pressure, or possibly reinforcing a support level.
Potential Impacts on Short-Term Price Action
The emergence of this cost basis cluster suggests that the $106,600 level could play a double role. On one hand, it may act as resistance if a surge in bullish momentum pushes the price upward.
On the other, should the market dip, the accumulated strength at this level might serve as a form of support, as underwater holders hover near their break-even points and are reluctant to sell at a loss.
Traders are now analyzing the dynamics behind this unique distribution to gauge future price movements. A rapid ascent towards the $106,600 mark could trigger a flurry of activity, with profit-taking and technical responses influencing market sentiment.
Conversely, if Bitcoin fails to breach this barrier, the level could reinforce caution among investors, setting the stage for consolidation. As Bitcoin continues its resilient run in a volatile market, this specific price cluster offers valuable insights into investor behavior and market structure.
