Bitcoin Price Tests Key Support as Sellers Remain Absent

Bitcoin's price has dropped below a key support level of $77,617, which held through late August. This drop is significant because it occurred on the heaviest four-hour volume of the session, dragging the $76,600 zone directly into play.

The unusual part about this backdrop is the lack of selling pressure from normally aggressive sellers. The Sell-Side Risk Ratio has dropped to 7 basis points per day, less than half the 16 basis points seen at the August peak. Long-term holders are also sitting out the rally, and short-term holders are selling into strength.

However, buyers continue to absorb the supply, with 549,000 BTC being sent to exchanges between Aug 19 and Sep 10, only to be bought up by other market participants. This is reflected in Glassnode's Short-Term Holder SOPR, which has held above break-even for 22 consecutive days but now reads 1.0104.

On-chain data suggests that the overhead resistance lies between $83K and $86K, based on three unrelated readings from Glassnode: the on-chain cost basis, derivatives, and institutions. This range is supported by the fact that US spot ETFs break even around $86K after 228 straight underwater sessions.