This Bitcoin Level Could Be To Watch In The Short Term, Glassnode Says

The on-chain analytics firm Glassnode has explained how the Bitcoin investor Cost Basis Distribution could highlight this level as an important one.

A Notable Amount Of Bitcoin Has Cost Basis At $106,600

In a new post on X, Glassnode has talked about the Bitcoin Cost Basis Distribution for the levels nearby to the current spot price. The “Cost Basis Distribution” (CBD) here refers to an on-chain indicator that tells us about how much of the asset’s supply was purchased at what price levels.

Below is the CBD chart shared by the analytics firm that shows the data related to price levels above $101,500.

As is visible in the graph, the Bitcoin price levels near to the all-time high (ATH) aren’t too dense with supply, meaning that not a lot of buying took place there and many investors who did buy there already capitulated.

A level that immediately stands out, however, is $106,600, where holders last purchased around 31,000 BTC. According to Glassnode, this particular supply cluster originated on the 16th of December. The owners of these tokens have held tight through all the volatility that has emerged since then.

Generally, large supply walls that are situated at levels higher than the spot price can act as probable points of resistance in the near future, as underwater investors can be desperate for the asset to return to their break-even level so that they can just exit with all their capital back.

From the chart, it’s apparent that Bitcoin’s sharp burst of bullish momentum earlier had its price close in on this level and it did find a rejection around there. The source of the resistance wasn’t selling from the underwater holders who purchased at $106,600, however, as the supply cluster is still holding strong.

It would appear that the owners of these tokens may be quite the resolute hands, as they are still waiting patiently even though the cryptocurrency is offering them an opportunity to sell. The analytics firm has noted that this could make the level an important one to watch in the short term.

In some other news, cycle analyst Root has shared in an X post how the institutional Bitcoin exchange-traded fund (ETF) holdings have changed this year.

As displayed in the above chart, the institutional ETF holdings fell during the first quarter of the year. “Institutional Bitcoin holdings dropped 10% in Q1 2025, the impact of de-risking during tariff and trade war uncertainty,” notes the analyst.

BTC Price

At the time of writing, Bitcoin is floating around $105,200, up almost 3% in the last week.