Bitcoin Tests Long-Term Holder Supply Cluster Amid Weakening Leverage
Bitcoin's price has been hovering around $84,000, retesting a cluster of long-term holder supply that includes this range. According to Glassnode, this cluster is the largest and most concentrated at present.
The analysts noted that open interest in Bitcoin has fallen to its lowest level since March and is almost 20% below its August level. Coin-denominated open interest has also decreased significantly.
Capital.com analyst Daniela Hathorn previously identified $87,000 to $88,000 as immediate resistance, while $84,000 to $85,000 was seen as the first area to watch on a pullback. JPMorgan referenced $85,000 as its estimated production cost, which could provide relief for miners and reduce the risk of forced selling.
Bitfinex analysts believe that much of the leverage accumulated during the breakout to $87,000 has largely been cleared, with perpetual positioning now close to neutral.