Bitcoin Stalls Near $87K Resistance Amid Correction Fears

Bitcoin's price remained stuck near $85,000 on October 4, struggling to break through the $87,000 resistance level. Analysts noted that repeated attempts to surpass this threshold have failed, suggesting a potential 8% to 10% correction if the trend continues. Niels, one analyst, warned that the current setup could lead to a pullback, though he dismissed the possibility of a deeper 15% to 20% drop. The $87,000 level is significant due to a concentration of liquidation orders, which could be triggered if Bitcoin fails to hold above this price.

Despite the technical challenges, Bitcoin has shown resilience, maintaining gains in October and recovering from a dip in late September. The asset's market capitalization stood near $1.71 trillion, with a dominance of around 61%. However, weekend trading volumes were lower compared to previous sessions. Analyst Andrew Kamsky highlighted that Bitcoin entered October stronger than its historical early-month pattern, with a 1.40% gain from September's close through October 3.

On-chain data provided some reassurance, with moderate long-term holder activity observed. CryptoQuant's Coin Days Destroyed metric averaged 457, down from 688 in late August, indicating that older coins were not being aggressively sold. This suggests that long-term holders are not contributing to increased supply near the current market peak. However, the reactivation of a 13-year-old dormant wallet holding 801 BTC added a layer of uncertainty, though it did not confirm any imminent selling.

The next critical level for Bitcoin remains $87,000. A sustained move above this price could weaken the rejection thesis and trigger short liquidations. Conversely, another failure to break through would reinforce the current range. For now, traders are watching closely to see whether Bitcoin can overcome this resistance or retreat further.