Cryptocurrency analytics company Glassnode, in its latest report, stated that Bitcoin (BTC) is stuck between $80,000 and $87,000, and that upcoming price movements could determine the market’s direction. According to the company, there are strong buy orders at the $80,000 level, while significant selling pressure exists in the $85,000-$87,500 range.
According to Glassnode’s analysis, Bitcoin fell to around $80,000 on October 15, testing the average cost levels of spot Bitcoin ETFs and companies holding institutional Bitcoin reserves. However, the resurgence of buy orders in that region within a few days indicated that investors continued to accumulate Bitcoin at those levels.
Analysts have calculated that the average cost of BTC for companies holding Bitcoin reserves is approximately $80,200. When considered alongside the average cost for spot Bitcoin ETF investors, the $80,000-$81,500 range stands out as one of the market’s most significant support zones.
However, there has been a noticeable slowdown in Bitcoin purchases by institutional companies. According to Glassnode, monthly purchases since June have been less than a tenth of the peak level recorded in November 2024.
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Why is the $87,000 Level Important for Bitcoin?
Glassnode stated that the biggest obstacle to Bitcoin’s rise is in the $85,000-$87,500 range.
Binance spot market order book data shows a high concentration of sell orders, particularly between $86,500 and $87,500. Additionally, the largest liquidation clusters in the futures market are concentrated around $85,000 and $87,000.
This situation suggests that if Bitcoin rises to these levels, the liquidation of short positions could accelerate the upward movement. However, strong sell orders in the same region may make it difficult for the uptrend to continue.
On-chain data also supports the importance of this resistance zone. The average cost for investors who bought Bitcoin in the last 6-12 months is around $86,700. Therefore, breaking above this level could allow this group of investors to return to profitability on average.
On the other hand, the average cost for investors who bought Bitcoin in the last 1-2 years is around $100,000.
Glassnode added that one of the positive developments was the decrease in selling pressure. In particular, the amount of coins transferred daily by Bitcoin investors with 1-2 years of experience has fallen to less than a third of its peak level at the beginning of October.
The pace of profit-taking has also decreased by about half compared to the peak in September.
Another development highlighted in the report was the capital inflows into spot Bitcoin ETFs.
On October 19, spot Bitcoin ETFs saw a net inflow of $653 million. However, Glassnode noted that these inflows occurred amid low trading volume, indicating that a strong recovery in demand has not yet been confirmed.
According to analysts, Bitcoin closing above $87,500 on a daily basis and continued ETF inflows with increasing trading volumes would be a significant signal that selling pressure in the market is being met by buyers.
Conversely, a daily close below $80,000 could result in average losses for both ETF investors and companies holding institutional Bitcoin reserves.
In such a scenario, Glassnode’s on-chain price indicator, which it calls the Real Market Average and which is around $77,600, could emerge as the next significant support level.
Glassnode also stated that investors will focus on two important developments in the coming period. The first is the Fed interest rate decision to be announced on October 28, and the second is the index changes expected to be announced by MSCI on November 11. The report also stated that Strategy, a company known for its Bitcoin reserves, could be considered within the scope of possible index changes.
*This is not investment advice.
Continue Reading: Glassnode: “Bitcoin Price Is Stuck” – A Critical Date Is Approaching – Here’s What You Need to Know