Bitcoin Faces Mounting Pressure as Glassnode Warns of Potential Drop to $88K

Glassnode cautions that Bitcoin’s inability to reclaim $113K could signal deeper weakness as long-term holders continue to sell into fragile sentiment.

Bitcoin (BTC) is struggling to regain footing after slipping below key support levels, with analytics firm Glassnode warning that the asset’s failure to recover the $113,000 short-term holder cost basis could lead to a significant retracement.

As of writing, BTC trades around $109,957, down 4% over the past 24 hours. Despite holding a broad range between $100,000 and $120,000 for most of 2025, Glassnode’s latest report suggests that momentum is fading as the market struggles to maintain bullish structure.

The $113,000 level represents the average entry price of short-term holders (those who bought within the last 155 days) — a key metric for sustaining upward momentum. Bitcoin’s repeated failures to reclaim this threshold indicate waning confidence. Should the weakness persist, Glassnode projects a potential slide to $88,000, the next major support corresponding to the realized price of active investors. This level previously acted as a floor during the April 2025 “tariff tantrum” correction.

Market data further reflects rising caution. The Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) currently sits at –0.05, implying that short-term investors are selling at small losses. Though not at full capitulation levels, it suggests deteriorating conviction.

Long-term holders have also shifted from accumulation to distribution, with Glassnode’s data showing a 104,000 BTC net outflow this month — the largest since July. Analysts note that until long-term holders reverse course and begin accumulating again, price recovery will likely remain constrained.

Meanwhile, volatility and derivatives activity have cooled following October’s liquidation wave. Realized volatility has dropped to 43%, and the one-week options skew — which spiked above 20% during the panic — has normalized near neutral levels, suggesting reduced hedging demand.

According to Glassnode, Bitcoin now appears to be in a fragile consolidation phase, where sentiment remains soft and demand still lacks conviction. While the worst of the market turmoil may have passed, sustained recovery will hinge on stronger accumulation and renewed investor confidence.

At last check, Bitcoin was changing hands just below $107,000, down roughly 4% in the past 24 hours.