Bitcoin Stalled by $68 Billion Breakeven Wall

Bitcoin is facing a significant hurdle as it struggles to break past $80,000. A large group of holders, approximately 880,000 BTC, are sitting on breakeven territory between $77,500 and $80,300. This means that even modest price movements can shift tens of billions of dollars in Bitcoin from profit to loss, potentially releasing supply into the market.

The concentration of this large group of holders has been a recurring problem for Bitcoin's rallies. When prices move through this zone, the profitability of these holders changes significantly. So far, the selling pressure has been absorbed by fresh demand, but it remains unclear whether this demand can clear the zone and establish support.

Bitfinex analysts have identified older buyers using the rally to exit positions without realizing significant losses. This behavior is indicated by the long-term holder Spent Output Profit Ratio (SOPR), which has been moving around 1 for nine consecutive sessions. A reading of around 1 indicates coins are being moved at roughly the same price at which they were acquired.