Over the last 24 hours, the market has experienced a valuing-impacting selloff led by Bitcoin, the cryptocurrency that started the trend of digital money. Using data from CoinGlass, it was found that since February, $576 million worth of leveraged positions across different cryptos has been cleared due to market fluctuations; of the eradicated leveraged positions, $407 million was in the bullish sentiment.
Bitcoin, which recently touched an average of $109,114, fell 4.41% to $102,850 at this report’s writing. In this uncertainty, analysts from Glassnode have found an important price zone that defines the direction of rates.
The $90,000 to $95,000 range has become a pivotal zone for Bitcoin since it surpassed the $90,000 mark in November 2024. According to Glassnode’s analysis, realized losses surge past $100 million per hour when Bitcoin dips into this range, highlighting it as a critical point where sellers often capitulate during corrections. Analysts emphasize the importance of maintaining this level to avoid further downward pressure and protect market stability.
Since breaking above $90K in Nov 2024, the $90K-$95K range has become a critical zone for #BTC. When the price dips into this range, realized losses spike above $100M/hour. This highlights the sensitivity of this price band, where sellers capitulate during corrections:… pic.twitter.com/PyxVNuopUs
— glassnode (@glassnode) January 21, 2025
CryptoQuant also joined the fearful trend in its latest report. I am also interested in the aspect of Short-Term Holder (STH). The Spent Output Profit Ratio (SOPR) is now negative, meaning STH is selling Bitcoin at a loss.
Negative Metric Signals Long-Term Opportunities Amid Market Volatility
In the past, instances where this metric got into negative territory have suggested long-term buying signals. This means that the probability of additional drops is also high, as short-term owners of these assets may decide to dispose of them instead of storing them in their portfolio.
As the market undergoes fluctuations, Glassnode points to the sustained performance of Bitcoin miners. Using the Difficulty Regression Model, it currently costs about $33,900 to mine one Bitcoin, while the current prices are over $100,000, thus making it thrice as lucrative.
Nonetheless, the increase in mining difficulty concerns miners in the existing financial network. Currently, the Miner Revenue per Exahash is $60,800, demonstrating that mining is a competitive environment. Even with pumps in the prices, higher hash rates put the miner’s profitability under pressure, earning less BTC per hash.
The altcoin market seems somewhat volatile as Bitcoin traders and investors track its movement again. A vertical in the vicinity of 90,000 to 95,000 needs to be preserved to avoid significant panic in the market. It may also be seen that analysts consider the present selloff as a good long-term entry opportunity if the Bitcoin price continues to hold some key support levels.
