Bitcoin price faces critical levels between $70K and $103K

Bitcoin (CRYPTO:BTC) is currently testing key price levels that could dictate its next major move.

According to Glassnode, an on-chain data analysis platform, Bitcoin’s price could either rally above $103,000 or face a deeper correction, potentially dropping to $70,000 in the coming weeks.

The platform’s Cost Basis Distribution (CBD) metric shows a dense supply between $88,100 and $103,000.

This suggests that many investors are selling their holdings in this range, likely to realise profits.

Beneath this dense supply zone lies an air gap between $70,000 and $88,100, where Bitcoin’s supply is much thinner.

Glassnode suggests that if Bitcoin falls into this air gap region, it could enter a "bottom discovery phase," characterised by significant price drops.

Despite this, the air gap could also trigger buying interest, as investors may see lower prices as an opportunity to accumulate Bitcoin.

This phase could eventually lead to a strong rally if Bitcoin rises above $100,000 again.

Bitcoin has recently traded around the $88,100 mark, the lower boundary of the dense supply zone.

This price level also coincides with the upper end of the air gap.

Currently, BTC is priced at $96,000 after briefly dipping to around $91,400.

Glassnode pointed out that $98,000 remains a crucial level for Bitcoin buyers, as the asset has shown resilience in this region despite recent market fluctuations.

If Bitcoin continues to trade around this level, it may set the stage for further price action above $100,000 in the near future.

At the time of reporting, the Bitcoin price was $96,820.25.