Bitcoin (CRYPTO: BTC) risks a deeper retracement toward $93,000–$95,000 if it loses critical support near $107,000–$108,900, according to Glassnode's latest on-chain analysis.
The cryptocurrency is currently trading around $108,800 after pulling back from its $124,000 all-time high.
Analysts noted that while a rebound to $113,600 remains possible, short-term holders are under pressure and may sell into strength, limiting upside momentum.
Glassnode highlighted that Bitcoin sits above a dense cost-basis cluster between $93,000 and $110,000, which could serve as a mid-term floor.
However, a sustained move below the six-month holder cost basis at $107,000 would raise the risk of accelerated selling.
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Despite the retracement, unrealized and realized losses remain shallow compared to prior cycles, with no signs yet of mass capitulation.
Relative Unrealized Loss sits at just 0.5%, far from the 30%+ levels seen in past bear phases.
Off-chain data shows mixed sentiment.
Spot market demand has neutralized, while perpetual futures positioning has turned bearish, with funding rates suggesting fragile neutrality.
Glassnode's states that the correction remains modest by historical standards, but conviction among buyers has weakened, leaving the market vulnerable to further downside if support levels fail.
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