Bitcoin Hovers Below Key Cost Basis, Faces Market Stress
- Bitcoin BTC +1.08% trades below critical cost basis amid thinning liquidity.
- Market stress reflects Q1 2022 dynamics.
- Expert insights suggest potential for further downside.
Glassnode reports Bitcoin’s spot price at $86.5K (Nov 21, 2025), indicating weakened demand with short-term holder cost basis at $105.5K, signaling stressed market conditions.
Current Bitcoin trading in an $81K-$89K range reveals liquidity issues reminiscent of post-ATH Q1 2022. Market awaits major moves amid reduced demand and cautious sentiment.
The Bitcoin market is currently witnessing a decline, with prices hovering below the $105K STH cost basis. This downturn is accompanied by a notable decrease in market demand and liquidity pressures that echo previous downturns.
Key players such as Glassnode, founded by Harry Mackintosh, provide critical insights into the market climate. Other voices like Shawn Young and Hunter Rogers have highlighted these market shifts, particularly in ETF demand and price momentum.
Market stress impacts Bitcoin price movements and affects investor confidence. Traders are purchasing aggressive put options, indicating a bearish sentiment with potential prices dropping below $75,000. These defensive positions suggest concern about market volatility.
“The options market isn’t signaling a bottom yet and is leaning toward the risk of a deeper move.” — Harry Mackintosh, CEO, Glassnode, Glassnode
The current trading range between $81,000 and $89,000 shows a fragile market, similar to the post-ATH period of Q1 2022. Experts from institutions like MEXC underscore the need for improved liquidity for a rebound.
Institutional engagement remains cautious without significant ETF inflows indicating a recovery. The True Market Mean of $81K serves as a support level, signaling the crucial state of the market.
Historical trends highlight that previous market recoveries required long-term holder accumulation. Current data suggests similar strategies may play a role in future trends, though institutional demand and whale activity are presently lacking.
