Glassnode said Bitcoin is retesting its ETF cost basis at around $81,000, and a strong close below this threshold could bring the mid-$70,000s back into focus.
In an analysis dated October 22, the on-chain data platform highlighted the level of around $81,000 that tracks ETF investors’ cost basis. In previous price movements, this area had acted both as resistance to gains and as support during declines.
It halted the rally in May
According to Glassnode, the same level capped the rally in May, after which Bitcoin suffered a sharp decline. Last week, it acted as support after the price briefly dipped below this area.
For that reason, during the current test, the focus is not only on whether the price touches the level, but also on whether it posts a close signaling a sustained break below it. Glassnode said that a convincing close to the downside could bring the mid-$70,000s back into focus.
The threshold in focus for Bitcoin this time is the ETF cost basis
Earlier in the day, support around $82,500 had been highlighted. Glassnode’s analysis looks at a separate indicator based on ETF cost basis, located at around $81,000.
The price data shown in the post put Bitcoin at $81,983, with a daily change of about a 1.6% decline. The downside scenario remains contingent on a close below $81,000.
Not investment advice.