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The Bitcoin price has been on an interesting trajectory over the past few weeks, setting new all-time highs along the way. More recently, the premier cryptocurrency surged to a new all-time high above the $124,100 mark.
The Bitcoin price has since succumbed to significant bearish pressure, hovering around the $118,000 region for most of the weekend. A prominent crypto trader on the social media platform X has identified levels that could be pivotal to the coin’s future trajectory.
$117,500 And $114,500 Are Next Support Levels: Glassnode Data
In a recent post on the X platform, crypto analyst Ali Martinez pinpointed two support levels that could prove crucial to the Bitcoin price’s movements over the next few days. This evaluation is based on the cost-basis distribution of the Bitcoin supply.
Martinez highlighted the cost basis distribution (CBD) metric, which looks at the average cost basis of the total Bitcoin supply within various price brackets. As observed in the chart below, the CBD metric utilizes a heatmap with fixed price bracket levels (on the vertical axis) over a specific period (on the horizontal axis).
The CBD chart shows that there is a significant cluster of investor cost-basis distribution around the $117,500 and $114,500 Bitcoin price levels. This basically indicates the presence of several investors who likely purchased their coins around these price regions. According to data from Glassnode, 72,900 BTC and 56,201 BTC were acquired from around the $117,500 and $114,500 levels, respectively.
Martinez earmarked these $117,500 and $114,500 levels as the next critical support zones for the market leader. These price regions could act as support cushions because investors—who have been in the green—are likely to defend their positions by buying more coins when the Bitcoin price returns to their cost bases; and this fresh buying activity could then help keep the price afloat.
It is worth mentioning that the Bitcoin price could be at risk of a severe correction if it breaks beneath the $114,500 support, as no major price cushion seems to be in sight.
Bitcoin Price Overview
As of this writing, the price of BTC stands at around $117,600, reflecting no significant movement in the past 24 hours. This past-day action mirrors the current indecisiveness in the world’s largest market. According to CoinGecko data, the flagship cryptocurrency is up by a mere 0.7% in the last seven days.
