Critical Levels Determined for Bitcoin Price

The sudden drop in Bitcoin (BTC) has redirected investors' attention to new cost levels. Currently, the Bitcoin price is trading around $86,500, and the market may be within a short-term compression zone. Current data provided by Glassnode indicates that investor behavior needs to be closely monitored.

According to the data, the cost level for short-term investors has now been established at $105,500. This level is significantly above the current spot price, suggesting that a large portion of short-term investors are in a loss position. On the other hand, the average active investor price has reached $87,100. This figure creates a resistance point just above the spot price and signals the possibility of an upward movement.

Additionally, the True Market Mean level is calculated to be $81,300. This level represents the risk-taking threshold for a broader investor base, while the Realized Price stands at $56,000, indicating that long-term investors are well above the loss zone.

Glassnode data shows that the price of Bitcoin is squeezed between the average active investor price and the True Market Mean. The breakout of this range in the coming days may play a crucial role in determining the direction of the price. If the price maintains above $87,100, it could be seen as a new strength signal. Otherwise, the $81,300 level is of great importance in a potential downward scenario.

In conclusion, investors are advised to be cautious regarding the increasing volatility in the markets due to these updated cost levels. The specified critical levels are expected to have significant effects on the future of the Bitcoin price.