- Bitcoin finds support at $74K, with strong cost basis clusters providing a potential floor
- $69K serves as a critical soft floor, limiting downside risk in the near term
Bitcoin [BTC] appears to have found support at the $74K level, where over 50,000 BTC are concentrated — largely held by investors who’ve remained inactive since early March.
This range marks the first major supply cluster below $80K, and with additional cost basis levels at $71.6K and $69.9K, the downside may be cushioned in the near term.
Price action and support levels
Bitcoin has stabilized at $74K, supported by over 50,000 BTC held by long-term investors inactive since early March. This price level reflects patterns seen in past bull markets, serving as the first significant supply cluster below $80K.
Between $74K and $70K, approximately 175,000 BTC are distributed across various cost basis levels, offering a cushion against further decline. The largest concentrations are located at $71.6K and $69.9K.
Cost basis clusters signal soft floor at $69K
Cost basis clusters, representing the average price at which coins were last moved, often serve as support or resistance zones. For short-term holders, these clusters indicate areas of either vulnerability or conviction.
The STH realized price is currently $89K, but the key zone is $69K, which corresponds to -1 standard deviation from the average.
Source: Glassnode
This zone has historically served as a soft bottom during market corrections. The clustering of BTC around this level suggests limited capitulation risk, reinforcing $69K as a key short-term floor.
Source: Glassnode
Bitcoin: Lessons from past bull markets
The $69K level has consistently acted as a key turning point during previous bull market corrections.
Historically, price movements often stabilized near the STH realized price -1σ band, now at $69K, before regaining upward momentum. This pattern emphasizes both the technical and psychological importance of this level.
Currently, the market structure reflects similar trends. Prices retrace toward dense cost basis zones held by resilient investors.
Long-term holders remain steady, while short-term traders stay close to break-even. This reduces panic-driven selling and may help stabilize market sentiment, unless the $69K level is decisively breached.
Soft floor forming between $70K-$74K?
Bitcoin’s recent dip to $77K was met with a swift rebound, suggesting the $74K-$70K zone could act as a soft floor — consistent with consolidation phases seen in prior cycles.
At press time, the daily RSI hovered near the oversold territory, and MACD continued to flash bearish momentum, indicating potential for further downside retests.
Source: TradingView
However, strong historical buyer interest below $80K lends credence to $74K holding. Should $70K fail, a steeper correction may follow.
Conversely, a bounce above $74K could mark a local bottom and reignite bullish sentiment.
