Bitcoin Retests 0.85 Supply Quantile Amid Market Volatility
Bitcoin is currently testing the 0.85 supply quantile level, a crucial point according to Glassnode's Supply Quantiles Cost Basis Model. This model indicates key price levels related to investor profitability.
- The 0.85 quantile corresponds to approximately $109,000, indicating that 85% of Bitcoin's supply is in profit at this level.
- Historically, holding above this level has led to significant rallies, while falling below often results in declines toward the 0.75 quantile ($98,000).
Recently, Bitcoin fell below $107,000 amid negative values in the Coinbase Premium Gap, suggesting higher selling intensity on Coinbase compared to Binance.
- The Coinbase Premium Gap measures the price difference between Bitcoin on Coinbase and Binance, reflecting different trading behaviors.
- Institutional entities on Coinbase have been selling more aggressively than global traders on Binance during the recent downturn.
Bitcoin has since recovered to around $109,500, reclaiming the 0.85 quantile level once again.
