Bitcoin's Price Fluctuates Near $80,000, Support Levels Thinned

Bitcoin's price has been fluctuating in the past 48 hours, approaching the $80,000 mark with potential downside risks. On-chain data reveals a significant support level between $80,920 and $78,000, which must hold to prevent further declines.

On-chain analytics from Glassnode indicate that support at the $78,000 level has thinned, with minimal cost basis clusters remaining. This follows a sharp move where traders acquired nearly 15,000 Bitcoin at the March 10 low and subsequently sold at the $87,000 local top.

Bitcoin began March with a dramatic crash, dropping below $77,000 on March 10 and March 11. The cryptocurrency then embarked on a recovery, reaching as high as $88,500 last week. On-chain data shows that some traders bought about 15,000 BTC during the crash, but many sold at the $87,000 local top, leaving a depleted buffer zone.

Bitcoin’s strongest cost basis clusters have shifted upward from $78,000, with prominent support levels now between $80,920 and $84,100. Approximately 20,000 BTC were acquired at $80,920, 50,000 BTC at $82,090, and another 40,000 BTC at around $84,100. These accumulations are now the new zones of confidence among recent buyers, potentially offering cushions for the recent market dip.

At the time of writing, Bitcoin is trading at $83,120, having lost the zone of 40,000 BTC around $84,100. This shifts the focus to the $82,090 and $80,920 price levels. If the correction deepens, structural support would reappear at $74,000 and $71,000, where long-term conviction buying occurred, estimated at 49,000 BTC and 41,000 BTC, respectively.

As support continues to climb, resistance is firming near the $95,000 mark. Investor cost basis data shows an increase of 12,000 BTC clustered at this level since March 24. This suggests that some investors anticipate a top forming around $95,000, and selling activity could intensify if prices approach that zone. This resistance, along with the support levels, could confine Bitcoin within a narrowing range in the short term.

Glassnode data confirms that long-term holders (addresses holding Bitcoin for more than 150 days) have been the primary source of profit-taking. Long-term holders’ profit-taking is now nearly matched by the losses endured by short-term traders who have been holding Bitcoin for less than 155 days.