Bitcoin At A Crossroads: $97,000 Cost Basis Holds Key To Next Breakout

Bitcoin's price has rebounded to over $105,000 in the past 24 hours after a sharp decline on Thursday due to macroeconomic pressures. The decline was triggered by a public spat between US President Donald Trump and Elon Musk, which increased volatility in the crypto market. Amidst renewed stability, the analytics firm Glassnode has shared an on-chain analysis highlighting key price levels in the Bitcoin market. Glassnode's analysis uses the Short-Term Holder cost basis model, which represents the average purchased price of all coins belonging to short-term holders. The STH cost basis is an important market metric that reflects the risk appetite of newer market participants and acts as resistance or support depending on the price direction. According to Glassnode, the current Bitcoin STH cost basis is estimated at $97,100, and the +1STD level of this cost basis is $114,800, which represents the next major resistance. A break above this level is expected to trigger massive buying pressure and push Bitcoin into uncharted price territory. On the other hand, the -1STD level at $83,200 represents a support zone, and a decisive price fall below this level would signal market weakness and trigger a cascade of liquidations and further price corrections. At the time of writing, Bitcoin trades at $105,745, reflecting a 1.07% gain in the last 24 hours.