Bitcoin Plummets To $120,600: This Could Be The Next Support

Bitcoin has seen a pullback below the $121,000 mark in the past day. Here’s where the next support level could lie, according to on-chain ￰0￱ Has Witnessed A Fast Plunge During The Last 24 Hours Bitcoin looked to be entering into an extended all-time high (ATH) exploration mode as it set multiple new records over the weekend and Monday, but the market has been delivered a Tuesday shock as the cryptocurrency has seen a quick crash back below $121,000. Compared to the new ATH around $126,200, Bitcoin is now down more than 4%. The altcoins have also taken a hit during the past day, with many top coins even printing returns worse than the number one digital asset. 24-hour losses stand at 5% for Ethereum and 6% for ￰1￱ is the only cryptocurrency among the large caps that has managed a positive return of 5%.

Related Reading: Social Media Turns Bearish On XRP: Is This A Buy Signal? With Bitcoin now sliding down, one question naturally arises: how much lower can the asset go? While markets are unpredictable, there can still be some factors worth keeping an eye ￰2￱ such factor may be on-chain support ￰3￱ CBD Shows Support Cluster Around $117,000 In a new post on X, on-chain analytics firm Glassnode has talked about how the Cost Basis Distribution (CBD) is looking for ￰4￱ CBD is an indictor that tells us about how many tokens of the cryptocurrency were last acquired at the various spot price ￰5￱ is the chart for the metric shared by ￰6￱ displayed in the above graph, the $120,000 to $121,000 range, which the cryptocurrency is retesting right now, carries the cost basis of a thin amount of ￰7￱ on-chain analysis, investor cost basis is considered an important topic because holders tend to react in a special manner whenever their break-even level is ￰8￱ more supply that was last purchased at a particular level, the stronger is the market’s reaction to a ￰9￱ investors face a retest of their profit-loss boundary from the above, they may decide to buy more, believing the drawdown to be a “dip” or for simply defending their cost ￰10￱ that the current range contains the cost basis of some investors, some degree of accumulation could happen, but it only remains to be seen whether it will be enough for a ￰11￱ Reading: Ethereum Faces TD Sell Signal At Key Resistance—$4,100 Next?

In the scenario that BTC declines further, the next key support cluster to watch is located near $117,000, where a notable 190,000 BTC was acquired. “A pullback into this area could attract demand as recent buyers defend the level,” explains the analytics ￰12￱ image from Dall-E, Glassnode. com, chart from ￰13￱