Glassnode’s weekly report highlighted growing concern for bitcoin BTC$107,217.78 as it struggles to reclaim the $113,000 short-term holder cost basis, which represents the average purchase price of investors who bought within the last 155 days.

This level serves as a key threshold for sustaining a bull market. Despite multiple attempts to regain it, bitcoin’s repeated failures suggest weakening momentum.

Glassnode warns that if the price continues to falter, it could fall towards $88,000, which is the next significant support level. The active investors’ realized price, a metric which reflects the cost basis of actively circulating supply and a level that often marks deeper corrective phases. This same metric nearly came into play during the April 2025 “tariff tantrum” correction.

The report suggests investor sentiment is showing signs of strain. Short-term holders are now selling at a loss. The Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) sits at –0.05 with bitcoin around $107,000, signaling mild losses. While not at full capitulation levels (around –0.2), it reflects deteriorating confidence.

Long-term holders are also contributing to sell pressure. The Long-Term Holder Net Position Change has declined by 104,000 BTC this month, marking the largest wave of distribution since July. Glassnode notes that until long-term holders shift back from selling to accumulation, price recovery is likely to remain constrained.

Meanwhile, the derivatives market appears calmer following the October liquidation crisis. Realized volatility has dropped to roughly 43%, and traders have scaled back downside hedges. The one-week options skew, which spiked above 20% during October’s turmoil, has now normalized near neutral, according to Glassnode.

Overall, Glassnode sees the bitcoin market transitioning into a consolidation phase after October’s turmoil. However, sentiment and structural demand remain fragile, suggesting that while the worst of the panic may be over, recovery will depend on renewed investor conviction.