Bitcoin (BTC) price action remains centered around critical levels, with $92,000 emerging as the required threshold for upward momentum and $70,000 as a key support zone, according to a recent GlassNode report.
The report highlights that price structure and on-chain data show strong confluences at these levels, forming a broader market outlook. That too We evaluated Bitcoin’s recent price action and highlighted three important milestones.
The first breakout of $70,000 in November 2024 marked the beginning of an aggressive upward trend, then surged rapidly above $80,000, reinforcing bullish sentiment. The market has since entered the consolidation phase, with the lower limit of this range set at around $90,000.
STH Cost-Based Relevance
In this landscape, the Short Term Holder (STH) cost base provides a framework for understanding the movements of these prices and their relevance.
Historically, the STH cost base has been an important reference point for bull market trends. This Metric Sigma Range calculation defines the local trading range: upper bands at $130,000, mid-levels at $92,000 and lower bands at $71,000.
As of press time, Bitcoin’s spot price is $89,208.77, trading between the mid-level and lower-level of the Sigma range, which is based on STH cost. This suggests a test phase of Bitcoin’s ability beyond critical support levels.
On the other hand, active realised prices provide additional insight into investor positioning. This metric estimates the cost base for active market participants and serves as a key threshold between bullish and bearish market conditions.
At $70,000, the active realised price coincides with the lower limit of the STH cost-based range, reinforcing the importance of this level of support. The report said breakdowns below this level could indicate weakness in the wider market.
Macroeconomic factors in play
The report also noted that liquidity contraction continues to affect the crypto market. The sustained uptrend in the US Dollar Index (DXY) reflects a tighter financial position, often putting downward pressure on risky assets.
As a trading asset 24/7, Bitcoin has historically been an early indicator of liquidity change, responding quickly to macroeconomic changes. Over the weekend, President Donald Trump’s announcement on strategic crypto sanctuaries temporarily boosted market sentiment.
The proposed reserves, including BTC, Ethereum (ETH), Solana (SOL), Cardano (ADA) and XRP, sparked short-lived gatherings. However, concerns about proposals and sustained geopolitical uncertainty led to the assembly returning to pre-announcement price levels within a day.
Recent price fluctuations in Bitcoin have led to increased volatility. Over the past two weeks, volatility has skyrocketed over multiple time frames, with over 80% of the one-week and two-week rolling windows recording one-week and two-week rolling windows, marking some of the highest observed values.
Hold or run away
The report highlighted data on the chain identifying how investor positioning is evolving in response to this volatility.
UTXO has achieved its price distribution (URPD) metric, indicating that many Bitcoin holders have acquired positions above $90,000. The initial sale marked the price below $86,000, entering an area where previous trading activities were limited.
Between February 26th and March 3rd, approximately 150,000 BTC (0.76% of the circulation supply) was traded within this “air gap” zone.
As prices try to recover, the market is using the rally by investors over $90,000 to test their departure or continuing holdings despite unrealized losses.
