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The cryptocurrency market has seen a sell-off in the past 24 hours. Amid this, a recent analysis from Glassnode reveals a critical Bitcoin price zone that traders should keep an eye on.
Bitcoin rose to an all-time high of $109,114 on Monday before pulling back. At the time of writing, Bitcoin is down 4.41% to $102,850. Most other digital assets also declined.
The recent sell-off wiped out leveraged cryptocurrency trading positions, resulting in about $576 million being liquidated across various digital assets in the past 24 hours, according to CoinGlass data. Bullish bets on price increases worth more than $407 million were liquidated during this period.
In light of the current uncertainty in the markets. Glassnode It highlights the crucial range that Bitcoin needs to hold to prevent a major sell-off: the $90,000 to $95,000 range.
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According to Glassnode, since Bitcoin broke through the $90,000 price point in November 2024, the $90,000 to $95,000 range has become a critical area for BTC. Glassnode noted that when Bitcoin price drops to this range, realized losses rise to over $100 million per hour, highlighting the sensitivity of this price range, as sellers capitulate during corrections.
What other indicators reveal
In a recent analysis, Cryptoquant He noted that the SOPR indicator for Short Term Holders (STH) has entered negative territory, indicating that short holders are now selling their Bitcoins at a loss.
Given this, two possible scenarios may unfold: first, they may choose not to realize their losses, with their realized price potentially acting as a strong support level, or they may sell, triggering a deeper market correction.
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CryptoQuant highlighted that historically, when this metric turns negative, it may highlight attractive entry points in the longer term.
According to Glassnode, a difficulty regression model estimates the cost of mining 1 BTC at $33,900, while Bitcoin is trading at over $100,000. This triple profitability margin shows the resilience of miners, even as mining difficulty continues to rise.
Meanwhile, mining revenue per Exahash, which currently stands at $60,800, highlights the competitive nature of the Bitcoin mining scene. As the hash rate rises, miners earn a smaller amount of Bitcoin per hash, putting pressure on revenues despite the strong performance of the Bitcoin price.
