Bitcoin Supply Wall Thwarts Momentum as Price Dips Below $80k

Bitcoin's recent surge has stalled, according to data from Glassnode. After rising above $81,000 in August, BTC fell back to around $76,000. The recovery momentum lost pace due to a 'supply wall' identified by Glassnode.

The supply zone where long-term investors are concentrated is losing momentum, as noted in Glassnode's weekly report. Bitcoin rose above $80,000 on August 27th but failed to overcome intense selling pressure between $83,000 and $86,000. The price subsequently retreated towards the $76,000 level.

As Bitcoin approaches its May levels again, the percentage of profitable supply in the market has increased. Approximately 65% of the supply was profitable in May when Bitcoin was around $78,000, rising to 68% at the end of August at the same price level.

Glassnode identified strong and critical support for Bitcoin as the $62,000-$65,000 range, while the $83,000-$86,000 region is seen as significant resistance. The current sideways trading pattern may continue in the short term, with a divergence between average daily inflows into US spot Bitcoin ETFs peaking at $290 million and daily trading volume remaining around $3 billion.