A 20% BTC Correction on the Table: Glassnode

Glassnode warns that Bitcoin's failure to reclaim the $113,000 cost basis may lead to a deeper correction toward $88,000, spurred by long-term holders selling and fragile market sentiment. This month, long-term holders have distributed approximately 104,000 BTC, marking the heaviest selling since July, while short-term holders are exiting at a loss. As Bitcoin struggles to regain the critical $113,000 level—representing the average purchase cost for short-term holders—investor momentum appears weakened. The report indicates that if the price continues to decline, it could approach $88,000, which is a significant support level. The metrics suggest that while market volatility has lessened compared to October’s liquidation, confidence remains low, and the ongoing sell pressure from long-term holders contributes to this fragile state. Until these holders switch from selling to accumulating, a substantial price recovery seems unlikely. The current condition reflects a transition into a consolidation phase, with recovery prospects depending on renewed investor conviction.

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