Glassnode suggested that Bitcoin needs a new catalyst to continue its rise.
Last Friday, cryptocurrencies experienced a major crash. Bitcoin (BTC), which fell to $102,000, then recovered to over $115,000.
While bullish expectations for Bitcoin, which has been fluctuating between $115,000 and $110,000 during the week, still continue, Glassnode suggested that Bitcoin needs a new catalyst to continue its rise.
Glassnode analysts said that Bitcoin needs a new catalyst to decisively break above the $117,000 level and resume its uptrend.
Analysts noted that this latest correction is particularly concerning because it is the third instance since late August where Bitcoin’s spot price has fallen below the 0.95-quantile price model ($117.1,000).
This level of $117,100 appears to be a level where more than 5% of the supply, mostly held by the largest buyers, is at a loss.
At this point, analysts stated that the Bitcoin spot price is currently trading in the 0.85-0.95 quantile range ($108.4 thousand – $117.1 thousand).
Analysts warned that failure to hold this range and the $108,000 support level could trigger a medium- to long-term correction.
“Without a new catalyst to push Bitcoin price above $117,100, the market risks a deeper correction towards the lower end of this range.
Historically, when Bitcoin has failed to maintain this zone, prolonged medium- to long-term corrections have typically occurred, with a sustained drop below $108,000 being a critical warning signal of structural weakness.
Glassnode also noted that an increase in profit sales by long-term holders could be a sign of slowing demand.
Hyblock Capital CEO Shubh Varma, speaking against Glassnode, said that Bitcoin may consolidate for a while after its recent sharp decline, and that some indicators are still positive.
The renowned CEO noted that fund flows into spot ETFs remain strong and spot trading volumes remain stable. He added that the potential for additional Fed rate cuts could also serve as a positive catalyst.
