Bitcoin Price Halted by Supply Wall: Two Critical Levels Determine BTC's Fate
Bitcoin's recent rally has stalled, according to Glassnode, which identified two key levels that will determine the cryptocurrency's fate. The price of BTC rose above $81,000 in August but failed to break through resistance between $83,000 and $86,000.
As a result, Bitcoin retreated back towards the $76,000 level, where it currently remains. Glassnode noted that this level is also seeing an increase in profitable supply, with approximately 68% of the supply being profitable at this price point, up from around 65% in May when the price was similar.
The critical support and resistance levels for Bitcoin have been identified by Glassnode as $62,000-$65,000 and $83,000-$86,000 respectively. According to the report, Bitcoin is currently stuck between these two areas, which may lead to a continued sideways trading pattern in the short term.
The recent rally was also driven by news-driven movements rather than broad-based momentum, as indicated by the divergence between average daily inflows into US spot Bitcoin ETFs and daily trading volume. Additionally, the rise in the US 10-year Treasury yield from 4.6% to 4.8% has increased macroeconomic pressure on Bitcoin.