Bitcoin (BTC) is at risk of a significant pullback after falling below a major support level, according to cryptocurrency analytics platform Glassnode.
Glassnode says Bitcoin has fallen below the 0.95 level of the Cost Basis Quantile metric, a level representing the price that BTC has to reach in order for 95% of BTC holders to be in profit.
The fall below the 0.95 Cost Basis Quantile suggests that investors are taking profit, which could place more downward pressure on Bitcoin.
According to Glassnode, Bitcoin could fall by up to 19% from the current level if BTC fails to rise above the 95% level of the Cost Basis Quantile.
“Reclaiming it would signal renewed strength, but failure to do so risks a drift toward lower supports around $105,000 – $90,000.”
Bitcoin is trading at $111,660 at time of writing.
Glassnode further says inflows into the Bitcoin spot exchange-traded funds (ETFs) have recently turned negative after recording positive inflows earlier in the month.
“US spot ETF flows have cooled after strong September inflows, with the latest sessions tipping into mild outflows. While overall accumulation remains intact, the slowdown suggests a pause in institutional demand.”
Glassnode also says that Bitcoin futures’ open interest, the quantity of BTC futures contracts held at the close of a trading day by market participants, has fallen by $2 billion as the price of the crypto king retraced.
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