Bitcoin Foundation For A Mid-Term Breakout Remains Thin, Cost Basis Data Shows

On-chain analytics firm Glassnode has highlighted how Bitcoin has only seen a relatively thin accumulation band form during the recent consolidation range.

Now, here is the chart shared by Glassnode that shows how the Bitcoin STH CBD has changed over the past year:

As displayed in the above graph, the Bitcoin STH CBD gained a large supply cluster at the price lows seen back in November, indicating that a notable amount of fresh accumulation took place in response to the market crash.

Besides the strong supply zone at the range’s lower end, the consolidation phase from November-January also resulted in some higher levels being filled out with supply. This accumulation wasn’t quite as strong as at the lows, but it still nonetheless showed that coins were actively changing hands.

Recently, Bitcoin has stabilized into another phase of sideways movement, but from the chart, it’s apparent that this time there has neither been a strong dip buying response, nor a buildup of a significant supply cluster as the consolidation has gone on.

That said, buying hasn’t been completely absent, with some supply starting to find cost basis inside the zone. “An accumulation cluster is forming in the $62k–$72k range,” noted Glassnode. “However, its intensity is modest relative to prior phases that preceded sustained expansions.”

It now remains to be seen how the supply range will develop in the near future. For now, the foundation provided by it remains thin for a mid-term breakout, according to the analytics firm.

At the time of writing, Bitcoin is trading around $71,100, up nearly 5% over the past week.