Bitcoin is facing a potential fix. You need to quickly collect $110,800. Otherwise, it could lead to further declines.
GlassNode has identified a key metric. $110,800 is the average cost of new investors based on buyers from May to July. During this period, Bitcoin hit its highest ever high.
Bitcoin needs to protect $110,800
GlassNode explains that the average cost of new investors, which has been on the market for a period of 1-3 months, reveals short-term behaviour and indicates the nature of new money. Based on GlassNode data, this price is currently at $110,800.
Historically, this price level is important, and below that it often shows the bear market, leading to considerable price adjustments.
The GlassNode chart reveals this trend. The orange line shows the costs of new investors, while the black line shows the prices of Bitcoin. Prices tend to drop as black lines cross under orange.
Bitcoin saw its largest longest liquidation event since December 2024 on Monday. Bitcoin prices fell temporarily on Tuesday, reaching a low of $108,600. It’s been slightly rebound since then. A sudden price drop caused a sale, liquidating a long position of over $150 million. This is why a quick recovery of over $110,800 is important.
Ethereum shows signs of overheating
Ethereum prices have reached a high level. GlassNode pointed out its important assessment. “The MVRV ratio has risen to 2.15 as Ethereum reaches the new ATH,” they said.
The MVRV ratio is an important on-chain indicator. It helps to compare market value with realised value and measure whether the market is overvalued.
2.15 MVRV ratio is noteworthy. That is, investors hold unrealized profits. In other words, the average profit is over 2.15 times.
Regarding the unprecedented number, GlassNode explained that “this level reflects previous market structure.” It coincided with March 2024 and December 2020, resulting in high volatility and profitability.
The $110,800 post is Bitcoin’s new key defense line. GlassNode was first featured on Beincrypto.
