Glassnode: Bitcoin could drop to $88,000 before trying again to break $100,000

According to the report by , if BTC further declines, it may drop below the $88,000 area and then recover to push towards the $100,000 mark. The report highlighted a key "gap" as the rapid rise of BTC has led to little trading activity between $76,000 and $88,000, forming an underdeveloped price range that could draw market attention if the current pullback continues. However, this price behavior is natural in the price discovery phase, which typically involves cycles of rebounds, corrections, and consolidation to establish a stable price range. As Bitcoin enters the price discovery realm, the report emphasized the role of long-term holders (LTH) in restoring previously dormant supply back into the circulating supply. While the $100,000 milestone remains within reach, the market may need to go through an accumulation phase to digest profit-taking pressure and fully maintain the upward momentum. A key driver of Bitcoin's price trajectory is the behavior of LTHs, who have realized record profits as liquidity has increased. Since September, this group has distributed around 507,000 BTC, with a profit-taking rate exceeding the levels seen in March. 's LTH activity metric indicates an increase in spending activity, suggesting that most of the distributed tokens are recently acquired, rather than held for years. LTHs are currently realizing $20.2 billion in daily profits, a new high, and strong demand is needed to absorb the redistribution of supply. Furthermore, the report warns that further consolidation is necessary to maintain market balance. The realized profit and loss to market size ratio, a measure of selling pressure, is approaching high-value regions, indicating an intensification of profit-taking.