Glassnode: Bitcoin could drop to $88,000 before trying again to break $100,000

According to the Glassnode report, if further declines occur, BTC could drop to the sub-$88,000 region before resuming its push toward the $100,000 mark. The report highlights a critical “gap” as BTC’s rapid rise has resulted in little trading activity between $76,000 and $88,000, creating an unexplored price range that could draw market attention if the current pullback persists. However, such price behavior is natural during the price discovery phase, which typically involves cycles of rallies, corrections, and consolidation to establish a stable price range. As Bitcoin enters the price discovery realm, the report highlights the role of long-term holders (LTHs) in returning previously dormant supply to the circulation of liquidity. While the $100,000 milestone remains within reach, the market may need a re-accumulation phase to digest profit-taking pressure and fully maintain upward momentum. A key driver of Bitcoin’s price action is the behavior of LTHs, who have achieved record profits amid increased liquidity. Since September, the group has distributed approximately 507,000 BTC, with profit-taking rates exceeding March levels. Glassnode’s LTH activity metric indicates increased spending activity, suggesting that most distributed tokens were recently acquired rather than held for years. LTH is currently realizing $2.02 billion in profits per day, a new high, and strong demand must emerge to absorb the supply reallocation. In addition, the report warns that further consolidation is necessary to keep the market balanced. The sell-side risk ratio, which measures the amount of realized profits and losses as a proportion of the market size, is approaching high values, indicating increased profit-taking. (CryptoSlate)