Clusters Between $80,000 and $84,000 Increase Support Cushion

Bitcoin had a wild plunge on March 10 and 11, falling below $77,000. Bitcoin recovered from this level for most of the month, hitting $88,500 last week.

The fall allowed some Bitcoin traders to buy 15,000 BTC at this level, according to Glassnode on-chain statistics. However, several locations from this cohort sold at the $87,000 local high, depleting a buffer zone that may no longer give price stability.

Bitcoin's strongest cost basis clusters have slowly risen from $78,000 this month, with the most important support levels being between $80,920 and $84,100. About 20,000 BTC were bought at $80,920, 50,000 at $82,090, and 40,000 at $84,100. Recent purchasers' trust in these new accumulations may buffer the market downturn.

Bitcoin is now trading at $83,120, having lost the 40,000 BTC zone at $84,100. This puts $82,090 and $80,920 under pressure. If the drop deepens, structural support will not return until after $78,000, where long-term conviction purchasing happened at 49,000 BTC and 41,000 BTC, respectively.

Support is progressively rising, while resistance at $95,000 is firming. Since March 24, investor cost basis data at this level has increased by 12,000 BTC.

This suggests that some investors expect a high around $95,000, which might increase selling activity. Bitcoin may trade inside a limited range due to its resistance and support levels.

Glassnode data shows that long-term holders (addresses holding Bitcoin for over 150 days) have been the main profit-takers. Short-term traders who have held Bitcoin for less than 155 days are currently losing near long-term investors' profit-taking.