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Bitcoin’s recovery, which began in mid-August, has lost momentum in recent days. While $BTC rose above $81,000 in August, it subsequently fell back to around $76,000.
While Bitcoin continues its sideways movement, Glassnode noted that $BTC is losing momentum in the supply zone where long-term investors are concentrated.
Bitcoin’s Rise Was Thwarted by a Supply Wall!
Glassnode’s weekly report stated that Bitcoin, after a short squeeze on August 19th, rose above $80,000 on August 27th but failed to overcome intense selling pressure between $83,000 and $86,000. $BTC subsequently retreated towards the $76,000 level.
However, Glassnode noted that as Bitcoin approaches its May levels again, the percentage of profitable supply in the market has also increased. While approximately 65% of the supply was profitable in May when Bitcoin was around $78,000, this rate rose to 68% at the end of August at the same price level.
What are the Critical Support and Resistance Levels for Bitcoin?
Glassnode identified the $62,000-$65,000 range as strong and critical support for Bitcoin, while the $83,000-$86,000 region is seen as significant resistance. According to the report, Bitcoin is currently stuck between these two areas, and a sideways trading pattern may continue in the short term.
On the institutional side, average daily inflows into US spot Bitcoin ETFs peaked at $290 million, but daily trading volume remained around $3 billion, weaker compared to previous strong bull periods.
Glassnode stated that this divergence suggests the rally may be a news-driven movement rather than a broad-based and sustained momentum.
Analysts also highlighted that on the macroeconomic front, the rise in the US 10-year Treasury yield from 4.6% to 4.8% in eight trading days, reaching a new cycle high, has increased macroeconomic pressure on Bitcoin.
*This is not investment advice.
Source: <a href="https://cryptonews.net/news/bitcoin/33394463/” target=”_blank” rel=”nofollow noopener”>cryptonews.net