Bitcoin's (CRYPTO: BTC) recent surge to $104,000 has been driven primarily by spot accumulation and a notable reduction in sell-side pressure, according to Glassnode's market report released Thursday.
What Happened: A key short-term support level has emerged around $93,000–$95,000, with both on-chain and exchange data suggesting that recent buyers are defending this cost basis zone.
“A key accumulation zone emerged between $93k and $95k,” the report notes, adding that this range aligns closely with the Short-Term Holder (STH) cost basis, which includes investors who entered the market in the past five months.
Glassnode analysts highlight that this zone is likely to act as a structural support during pullbacks. "This range… represents a demand zone where investors are likely to see value once again," they wrote.
Supporting this, net buying pressure has intensified on U.S. exchange Coinbase (NASDAQ:COIN), while selling on Binance has sharply declined. "Coinbase has experienced a regime of consistent net buying… Binance markets have transitioned from intense net selling… to a milder -$9M daily today."
In derivatives markets, perpetual futures open interest has dropped by 10% from its peak, signaling a short squeeze and cleansing of excessive short-side leverage.
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WHy It MattersL This positions the market for a more sustainable uptrend.
"These types of shakeouts are characteristic of healthy resets… often seen during the early phases of a new market trend," the report states.
While ETF inflows have slowed from a peak of $389 million/day to around $58 million/day, demand remains strong. Glassnode points out that this institutional participation reflects a longer-term conviction in Bitcoin, echoing inflow patterns from earlier rallies in 2024.
Options market data also shows traders leaning bullish.
The 1-month 25 Delta Skew stands at -6.1%, indicating traders are paying more for calls than puts, a classic sign of upside speculation.
The report further states that Bitcoin's upward momentum is well-supported.
As long as the cost basis support zone holds and derivatives markets continue to stabilize, the rally may remain intact even as the asset approaches its all-time high near $109,000.
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