Bitcoin Trapped at Resistance Zone as Long-Term Holders Hold Firm

Bitcoin's recent rally has outperformed major traditional assets over the past month, but is struggling to break through a strong resistance zone around $83,000 to $86,000. This barrier is significant because it coincides with the cost basis of most long-term holders (LTHs), who acquired roughly 1.07 million BTC between these prices.

The derivatives market also points to this barrier, with short liquidation levels increasing 21% since August 19. A sustained move through $86,000 would consume a significant amount of short-liquidation fuel, Glassnode noted.

Despite nearing its resistance zone, selling pressure has remained relatively weak. Long-term holders accounted for just 47% of realized profits, down from 88% during the August peak.