Bitcoin Recovery Hits Resistance at $85,000

Bitcoin's price has recovered significantly from its June low, increasing by 44.2% to around $84,400.

This move is greater than the average of historical recoveries from lows, which was 29.7%.

The June drop was approximately 53.06%, a magnitude that has been followed by lower price levels in the past.

In particular, a similar 53.10% drop occurred in 2021, followed by another lower low.

However, Bitcoin's Market Value to Realized Value (MVRV) ratio stood at 1.10 at the June bottom, which is less than the 1.55 seen in 2021.

This potentially reduces pressure on Bitcoin to continue rising.

Despite this, institutional demand seems to be supporting buyers, with weekly ETF inflows reaching $2.39 billion and monthly flows exceeding $2.7 billion.

The available supply tightens as exchange reserves decrease, limiting selling pressure as prices rise.

However, leverage could weaken this structure if traders become the primary force behind the rebound.

Open interest already sits near the 30 billion range, and funding levels remain relatively modest.