Bitcoin Hits Key Support; Analysts Warn of Deeper Correction
Bitcoin is testing critical support near the 0.85 cost basis quantile, with analysts warning a break could trigger a medium-term correction.Summary
Bitcoin's price retreated to $107,000 after briefly exceeding $111,000, placing it at a crucial inflection point determined by on-chain data. Glassnode's Cost Basis Distribution Quantile Model shows the price is hovering near the 0.85 quantile boundary, which acts as key support; a sustained break below this level signals an increased risk of a medium-term correction.
Furthermore, derivatives market sentiment on Binance suggests caution, as sellers have recently dominated futures trading volume. The current Bitcoin futures long/short ratio is slightly tilted toward the sell-side at 0.955, indicating fragile balance and potential selling pressure.
Analysts caution that if buyers fail to hold the 0.85 zone, the market will likely revisit lower levels, emphasizing that renewed buying activity or institutional demand is needed to rebuild bullish momentum.
(Source：BeInCrypto)