- Bitcoin battles to reclaim $113K short-term holder cost basis.
- Long-term holders distribute 104,000 BTC monthly, signaling exhaustion.
- Fed policy decisions loom as a major catalyst for market volatility.
Bitcoin (BTC) is grappling with a lack of conviction, according to a recent Glassnode analysis shared on X. The BTC Cost Basis Distribution Heatmap reveals a market struggling below key cost-basis levels, with demand softening and long-term holders (LTHs) increasingly selling off their positions.
This heatmap, spanning November 2024 to October 2025, shows Bitcoin’s price oscillating around the $113K short-term holder cost basis, a critical threshold for bullish momentum. Failure to reclaim this level raises the specter of a deeper correction toward the $88K Active Investors’ Realized Price.
Long-Term Holder Sell-Off Signals Waning Market Demand
The on-chain data highlights a troubling trend: LTHs are distributing approximately 104,000 BTC per month, the highest rate since mid-July, signaling waning confidence. This sell pressure, coupled with short-term holders exiting at a loss, has created a delicate market balance.
The heatmap’s color gradient, ranging from purple (low supply) to red (high supply), underscores significant resistance around $107K–$118K, where profit-taking has capped recent rebound attempts. Meanwhile, subdued volatility and balanced options positioning suggest a temporary calm, but the market remains vulnerable.
Key Support and Resistance Levels to Monitor
The upcoming Federal Reserve meeting could be a pivotal moment. A dovish stance might stabilize prices, while a hawkish surprise could reignite volatility and trigger further downside. Historically, Bitcoin has rebounded above Realized Price during bull markets, but current dynamics hint at a prolonged consolidation phase unless LTHs resume accumulation. For investors, this period demands caution, with the market’s next move hinging on macroeconomic cues and on-chain sentiment shifts.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
