In a major development for Bitcoin traders, new on-chain data shows that more than 420,000 BTC now have a cost basis near the $94,000 level. According to blockchain analytics firm Glassnode, this price range has become one of the strongest support zones of the current Bitcoin cycle. It’s already proven itself during early May’s market consolidation—and now it could be the foundation for Bitcoin’s next big move.
Why the $94K Level Matters
When thousands of BTC are bought at a certain price point, that level tends to act like a magnet in future trading. Investors are less likely to sell below it, and new buyers often step in when prices approach. That’s exactly what we’re seeing at $94,000.
Bitcoin’s recent surge to $108,000 was powered by heavy trading around this level. In the 24 hours leading up to 10:00 AM UTC on May 23, BTC/USD trading volume jumped 18%, crossing $35 billion on major platforms like Binance and Coinbase. Simply put, the market respects this zone.
Strong Holder Conviction = Solid Support
This cluster of 420K BTC isn’t just numbers on a screen—it reflects real investor conviction. People are holding strong around $94K, and that can give traders a solid reference point for managing risk or planning entries.
Glassnode data shows that this accumulation happened during a market cooldown, not a rally, meaning buyers had confidence even without short-term hype.
Ethereum and Altcoins Join the Party
Bitcoin’s strength often lifts the rest of the crypto market. Over the same period, Ethereum (ETH) climbed 5.2% to $4,200, showing renewed interest in top altcoins. When Bitcoin finds support, it often sets the stage for broader market rallies.
BTC vs. Stocks: A New Relationship?
Interestingly, Bitcoin is moving in sync with stock markets too. On May 22, the S&P 500 rose 0.8% to 5,300, while Bitcoin followed with a 3.5% gain. That’s not a coincidence. Institutional investors are treating Bitcoin more like a tech stock—and the correlation with the Nasdaq Composite is now at 0.75, according to recent data.
What does that mean? If stocks keep climbing, Bitcoin may ride the wave.
Institutional Flows Add Fuel to the Fire
Institutional players aren’t staying on the sidelines. Bitcoin ETF inflows hit $1.2 billion over the past week, and CME Bitcoin futures open interest has surged 10%, reaching $8 billion. These numbers suggest big money is backing Bitcoin’s current price zone—and might help defend it if the market dips.
Glassnode also reported that 25,000 BTC moved into long-term wallets over the past 30 days. That’s a strong vote of confidence from seasoned investors.
Technical Signals Back the Bullish Case
From a charting standpoint, things look just as bullish. Bitcoin’s Relative Strength Index (RSI) is at 68, showing strong momentum without being overbought. Its 50-day Moving Average (MA) sits just below at $89,500, giving extra cushion if prices pull back.
Volume trends also support the uptrend. Daily BTC trading volume rose to $22 billion, up from $18 billion a week ago.
What Traders Should Watch Next
The $94,000 zone isn’t just a number—it’s a battleground. If Bitcoin pulls back, traders should watch this level for buying opportunities. Tight stop-losses just below it can help manage risk while giving room for upside.
Also keep an eye on:
- Equity markets, especially the S&P 500 and Nasdaq
- Federal Reserve announcements or macroeconomic shifts
- Bitcoin ETF flows and futures open interest
These cross-market signals will help guide your strategy.
