Bitcoin's Bull Trap at $85,000: Analyst Issues Warning

Crypto analyst Sherlock is sounding a warning about Bitcoin's price action around $85,000. According to Sherlock, spot Bitcoin ETFs in the US have been trading below their total break-even cost of approximately $86,000 for 228 consecutive trading sessions.

This has resulted in around $18 billion in unrealized losses for ETF investors, with roughly $3.9 billion still unrecovered despite a 23% price gain over the past 21 trading sessions.

The highest concentration of long-term investor-owned Bitcoins is found at around $85,000, where almost 1.07 million BTC have been purchased between this and $86,000.

Sherlock notes that a daily close above $86,000 for Bitcoin would confirm market absorption of the supply in this region, but until then, institutional investors who have been in a losing position may see this as an opportunity to sell and exit.