Bitcoin's $87K Breakthrough Fails as Profit-Taking Pressure Mounts

Bitcoin's recent attempt to break through the $87,100 resistance has failed, causing the cryptocurrency to pull back by nearly 4% to around $83,800. However, despite this decline, the broader recovery structure remains intact, with Bitcoin still above the $82,900-$83,000 range floor.

The Relative Strength Index (RSI) has fallen from overbought levels to around 52, indicating a loss of momentum in the September rally rather than a full reversal. The current price is testing whether buying interest can hold the cost basis zone near $84,000-$86,500, which could create conditions favorable for another test of resistance.

However, losing this zone would weaken the recovery and expose $80,000, increasing downside pressure. Meanwhile, the number of Short-Term Holders (STH) with profits has risen to around $1.05 billion, creating an environment where current buyers will realize significantly greater profits when they trade coins, producing increased supply at the present price level.

This increased selling incentive explains why it was difficult for Bitcoin to stay above $87,000 and reinforces the need for strong demand. If holders begin to lock in their gains, exchange inflows may remain high and help cap the price below resistance.