On-chain analytics firm Glassnode has highlighted that Bitcoin's recent consolidation range has only seen a relatively thin accumulation band form, suggesting a weak foundation for a sustained mid-term price breakout. According to Glassnode's analysis of the Bitcoin Short-Term Holder Cost Basis Distribution (STH CBD), an indicator tracking supply purchased within the past 155 days, the current accumulation cluster in the $62,000 to $72,000 range is modest in intensity compared to prior phases that preceded sustained expansions.
The firm noted that during the November market crash, a large supply cluster formed at the price lows, acting as a support cushion and leading to a consolidation phase. However, Bitcoin's price later fell below this cluster, putting those tokens underwater. While some higher price levels were filled with supply during the November-January consolidation, the recent sideways movement has not seen a strong dip-buying response or a significant buildup of supply.
Concurrently, Bitcoin has now remained below the psychologically significant $100,000 level for over 120 days, marking one of its longest consolidation phases in recent years. This extended pause reflects a market digesting previous gains, with traders focusing on accumulation rather than aggressive speculation. Institutional investors are shaping this trend, preferring stable entry points during consolidation, which contributes to the controlled volatility and sideways price action.
Despite the prolonged consolidation, overall crypto market sentiment remains cautiously optimistic. Investors are waiting for stronger catalysts, such as macroeconomic factors or institutional flows, to push prices higher. At the time of writing, Bitcoin is trading around $71,100, up nearly 5% over the past week.
