$117,000 Becomes Key Support Zone for Bitcoin
Still, Glassnode’s analysis highlighted a few potential pressure points. Using its Cost Basis Distribution Heatmap, the firm identified structural support between $121,000 and $120,000. It has even stronger buying interest around $117,000, the price level where roughly 190,000 BTC last changed hands.
“While price discovery phases inherently carry the risk of exhaustion, a potential pullback into this region could invite renewed demand as recent buyers defend profitable entry zones,” Glassnode explained. Therefore, the $117,000 zone could act as a critical level for stabilization if momentum cools.
At the same time, analysts are keeping an eye on the derivatives market, where rising leverage and crowded call positions could amplify volatility. When traders take on too much leverage, even minor dips can trigger cascading liquidations, a pattern seen in past Bitcoin rallies.
Institutional Demand Remains Strong
Despite short‑term caution, institutional appetite for Bitcoin remains robust. U.S.-listed spot Bitcoin ETFs have absorbed over $2.5 billion in inflows in just the first three days of this week, including their second‑largest daily inflow on record, according to CoinGlass data.
Glassnode concluded that Bitcoin’s market structure points to “a robust yet maturing uptrend.” It remains supported by steady demand but is becoming “increasingly sensitive to profit‑taking and leverage resets.”
At the time of writing, BTC is trading just below $122,000, after briefly touching $124,000 late Wednesday. Whether it consolidates or corrects, the coming days could reveal how durable this rally truly is.