Bitcoin Tests Critical Support Level Amidst Absence of Sell-Side Pressure

Bitcoin's price has been steadily declining since its peak at $82,300 in late August and is currently sitting on a critical support level of $76,600. This area represents a confluence of both horizontal and channel floor support levels, making it a crucial point for the cryptocurrency.

The absence of sell-side pressure has been notable throughout this month, with long-term holders choosing to sit out the rally rather than selling their coins. Meanwhile, short-term holders have been selling into strength, but buyers continue to absorb the supply, keeping prices stable.

Looking at on-chain data, three unrelated readings all point to an overhead ceiling in the $83K to $86K band. This is significant because it represents a level where corporate treasuries and US spot ETFs break even after 228 straight underwater sessions.

The Sell-Side Risk Ratio has dropped to 7 basis points per day, indicating that the coins changing hands are small relative to the network. The composition of sellers has also shifted, with recent buyers rather than long-term holders driving profit-taking. Supply in the $76K to $82K range grew while the older $62K to $65K base thinned.