Glassnode Weights Bitcoin Cost Bases to Map Nearby Support and Resistance

Glassnode’s Oct. 20 update outlines a way to assess where Bitcoin holders’ acquisition prices sit around the market, separating weighted supply below spot from supply above it as potential support and resistance. The proximity focus can change the reading even when the price remains near earlier levels: a cost basis farther from spot receives less weight than one nearby. The measure describes where supply last moved; it does not establish how holders will act if Bitcoin reaches those prices. The method divides the cost-basis distribution into 100 quantiles. It weights each quantile by its distance from spot, with that distance scaled by the 30-day rolling standard deviation of price. The Proximity Support Index measures the weighted share below spot, while the Proximity Resistance Index measures the share above it.

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