Bitcoin (CRYPTO: BTC) could be approaching a decisive phase as Glassnode data suggests daily closes above $85,000 would signal improving demand.
Bitcoin Struggles Below $85,000
Glassnode on Wednesday highlighted the $84,000 to $85,000 range as a critical resistance zone that has repeatedly rejected Bitcoin rallies this year:
- Long-term holders control almost 4 million BTC purchased between $85,000 and $118,000, creating significant overhead selling pressure as investors seek to break even.
- Spot Bitcoin ETF demand remains weak, with just $67 million in net inflows over the past two weeks.
- BTC has slipped below the average ETF investor cost basis of $81,500, while buying interest on Binance has shifted toward $78,000 to $79,000. On chain data shows $77,900 is another key support level, followed by the short-term holder cost basis at $75,800.
Bitcoin’s one-month realized volatility has fallen to 25%, a level seen on just 5% of trading days since 2015.
Similar compression preceded sharp price moves in 2023 and August 2026.
Selling pressure is easing, with daily realized losses dropping from $630 million in August to $27 million around Oct. 24.
Wallets holding 100-1,000 BTC are also accumulating.
Glassnode sees a daily close above $85,000 as an initial bullish signal, while a breakout above $87,500 alongside stronger ETF inflows could confirm upward momentum.
What’s Next For BTC and Altcoins
Glassnode warned that weakening economic indicators and fading speculative demand could limit cryptocurrency gains following the Federal Reserve’s decision to hold interest rates steady.
Altcoin market breadth has also deteriorated, with the percentage of the top 100 altcoins trading above their 200-day moving averages falling from 88% on Oct. 4 to 66% currently.
Hyperliquid trading activity has increasingly shifted toward stocks, indices and commodities, suggesting speculative capital is favoring traditional markets.
Image: Shutterstock
Recent Comments