Bitcoin is ranging $1,000 to $5,000 above short-term holder cost basis, a key support level to be maintained.<\/p>\n 2 min read<\/span><\/p>\n Updated:<\/span> Feb. 20, 2025 at 12:29 am UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n Bitcoin (<\/span>BTC<\/a>) is on the verge of a decisive market juncture and must hold above $92,500 to maintain bullish momentum, according to a recent report by <\/span>Glassnode<\/a>.<\/span>\u00a0<\/span><\/p>\n The report highlighted parallels between the current price structure and previous cycle peaks, raising concerns about potential downside risks should buying pressure wane.<\/span><\/p>\n A key metric in assessing Bitcoin\u2019s vulnerability is the supply held by short-term holders (STH), which mirrors patterns seen in May 2021. Similar accumulation trends during that cycle led to heightened sensitivity to price declines, triggering large-scale distribution events.<\/span><\/p>\n Bitcoin\u2019s current price hovers between $1,000 and $5,000 above the STH cost basis of $92,500. This level has historically acted as a critical pivot point, marking the boundary between bull and bear trends.\u00a0<\/span><\/p>\n If Bitcoin falls below this threshold, the report warns of a possible cascade of selling pressure, reminiscent of previous post-all-time-high (ATH) corrections in May and November 2021, as well as February and April of last year.<\/span><\/p>\n Past corrections have followed a familiar pattern: a rally into price discovery followed by a consolidation phase where realized supply density spikes and selling pressure mounts.<\/span><\/p>\n Historical data suggests that if bearish conditions intensify, Bitcoin could retrace toward the lower band of the STH cost basis model, which currently stands at $71,600.<\/span><\/p>\n The report added that if Bitcoin breaches the $92,500 threshold, panic selling among short-term holders could accelerate losses.\u00a0<\/span>Conversely, if demand remains strong, BTC could stabilize above its ATH and establish a new trading range, delaying further downside risks.<\/span><\/p>\n Market momentum is fading, reflected in weakening open interest and declining perpetual futures funding rates.\u00a0<\/span><\/p>\n While Bitcoin and Ethereum (ETH<\/a>) funding rates remain slightly positive, Solana (SOL<\/a>) and memecoins have seen funding rates turn negative, signaling a shift toward a risk-off sentiment.<\/span><\/p>\n The open interest (OI) contraction further supports this risk-off trend, as memecoins\u2019 OI dipped 52.1%. Comparatively, Bitcoin\u2019s OI declined around 11.1%.\u00a0<\/span><\/p>\n The steep decline in memecoin OI highlights a rapid retreat of speculative capital, suggesting traders are exiting riskier bets amid growing market uncertainty.<\/span><\/p>\n![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/imgresize\/timthumb.php?src=https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/02\/crypto-bitcoin-liquidation.jpg&w=70&h=37&q=75\")
Bitcoin must hold $92.5k amid accumulation phase reminiscent of May 2021<\/span> Gino Matos \u00b7<\/span> 2 weeks ago<\/span> \u00b7 2 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n![](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/cs-gino-150x150.jpg\")
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<\/p>\nBitcoins Supply conditions and historical patterns<\/strong><\/h2>\n
Bitcoins Derivatives sentiment<\/strong><\/h2>\n
Mentioned in this article<\/h6>\n