Bitcoin may face a prolonged period of range-bound trading as on-chain metrics show the price holding between key cost-basis bands, according to analysts at Glassnode. Despite active dip-buying near the lower end of the range, the firm suggests a sustained consolidation phase could persist.
Analysts flag range-bound conditions
Glassnode’s latest assessment indicates BTC is trading between “key cost-basis levels,” a common sign of equilibrium between buyers and sellers. In such environments, momentum often cools and price discovery slows as the market digests prior moves and reassesses risk.
Cost-basis metrics frame support and resistance
Cost-basis levels, often derived from realized price cohorts, serve as on-chain gauges of the average acquisition price for different holder groups. When spot prices oscillate around these levels—particularly those associated with short-term and long-term holders—they can form de facto support and resistance zones. Persistent price action in this band typically aligns with consolidation.
Dip-buying meets supply overhang
While traders continue to buy pullbacks toward the lower boundary of the range, Glassnode notes that demand has not yet been sufficient to drive a clean breakout. This dynamic suggests an ongoing supply overhang as investors sell into strength, reinforcing the likelihood of sideways movement until a clear catalyst emerges.
What to watch
- Sustained moves above or below the identified cost-basis bands to confirm a directional break.
- Changes in on-chain realized profits/losses that may signal exhaustion of sellers or buyers.
- Shifts in liquidity and macro drivers that could reintroduce trend momentum.