Bitcoin Fails to Hold $85,000 as Long-Term Holder Supply Weighs
Bitcoin's recent surge above $85,500 was short-lived as it fell back to around $84,000. The initial jump was attributed to softer US inflation data, which revived hopes that the Federal Reserve could delay further tightening.
The market's reaction was expected, but what follows is crucial: sustaining spot demand and absorbing existing holder supply are key factors in determining Bitcoin's next move.
A report from Glassnode highlights that $84,000 to $85,000 is a significant long-term-holder cost-basis cluster. This means more long-term holders accumulated around those prices, creating a scenario where they can sell near breakeven or take profits after Bitcoin's third-quarter recovery.
Investors who entered the market through ETFs and reduced leverage are not enough to push past this level. Existing holder supply is absorbing demand, capping the market's potential for sustained growth.