Bitcoin (BTC) broke a new record by exceeding $124,000 in mid-August, then fell below $110,000.
While predictions of a $100,000 drop are being made for BTC, which has been fluctuating within a certain range, on-chain analytics firm Glassnode announced critical levels to watch out for for Bitcoin.
Stating that Bitcoin is facing intense selling pressure from short-term investors at current levels, Glassnode said that $113,600 is critical for Bitcoin.
Glassnode added that this price coincides with the average purchase price of short-term investors who purchased BTC one to three months ago.
At this point, Glassnode warned that if the Bitcoin price reaches $113,600, selling pressure from short-term investors could increase and a new decline could occur.
“The dynamics forming at this level could limit the short-term upside and potentially act as a strong resistance level.”
Glassnode analysts also noted that the $107,000 to $108,000 levels are key support levels for BTC.
Glassnode stated that the market is testing this key level and if it fails to maintain this level, a drop to the $93,000 to $95,000 range is possible.
“While this correction has been mild compared to past cycles, investor confidence has weakened.
Bitcoin and the market are at a crossroads between recovery and further decline.
If Bitcoin fails to hold key support levels, further declines towards the $93,000-$95,000 range are likely.
*This is not investment advice.