Why $88K is the Bitcoin Price Level to Watch According to Glassnode

Glassnode stresses that the $88,000 price point is a key level to watch by Bitcoin investors seeking to gauge the asset’s momentum.

After reaching new price highs of around $108,000 in early December 2024, BitcoinMomentum has been largely weak in recent weeks Amid headwinds at the macroeconomic level. More recently, this saw the asset’s price fall by almost 11% from around US$102,700 to US$91,200 before rebounding to trade near US$95,000 at the time of writing.

Amid the uncertainty, a prominent cryptocurrency analytics platform has identified a key level for investors to monitor to gauge the asset’s path.

Glassnode points reach $88k

Glassnode confirmed that the $88,000 price point is a key level to watch by Bitcoin investors seeking to gauge momentum. The company revealed this in Share X on Thursday, January 9, highlighting that it represents a cost basis for holders of short-term bonds.

This measure is important because short-term holders tend to sell as the market price approaches the cost basis, also known as the realized price.

Glassnode notes that this reaction could lead to a significant price drop as Bitcoin does not appear to have much price support just below this level. The company reached this conclusion using UTXO’s Realized Price Distribution, which shows the prices at which market participants last moved coins.

According to the chart, below $88,000, the next important support for Bitcoin could be around $73,000, indicating volumes that last moved at this price.

Glassnode point of view Received great support From prominent cryptocurrency analyst Ali Martinez, who described the price range as a “free fall zone.”

Potential fluctuations in the future

While the potential catalyst for such a price decline is currently unclear, Glassnode’s insights come ahead of the release of key US economic data on Friday, January 10, including the change in non-farm employment and the unemployment rate.

These data releases can lead to significant market volatility if they come out weaker or stronger than economists expected, as they could impact the Fed’s interest rate considerations.

Interestingly, veteran trader Peter Brandt It was suggested In recent weeks, a deeper correction may be necessary for Bitcoin, specifically below the $89,000 level, before it can rise to new highs. Meanwhile, he highlighted that the asset could form a head and shoulders pattern on the daily candlestick chart with a target of around $73,000.