Seller Exhaustion in Bitcoin Price Action, but No Clear Turning Point Yet

Bitcoin's price has been stuck in a narrow band between $63,500 and $65,000 for most of August 2026, but onchain analytics firm Glassnode sees signs that sellers are running out of steam. According to the firm, more than half of the circulating Bitcoin supply (54.6%) is currently sitting in profit, effectively putting the average holder at breakeven, a condition often associated with the tail end of corrections rather than their beginning.

Glassnode's commentary describes the current market as compressed rather than capitulating, adding that trading conditions are 'priced for nothing and reacting to everything.' Despite some institutional demand holding up alongside retail conviction, analysts caution that the recovery narrative only holds if Bitcoin convincingly clears $65,000 in the near term.

Wintermute OTC trader Jasper De Maere notes that a decisive break through $65,000 would validate the recovery thesis, while another rejection would support the view that seller exhaustion is just a pause before the next test lower. Glassnode analysts seem convinced that sellers who drove Bitcoin lower through late July and early August are largely spent, but it remains to be seen whether this is enough to build a durable bottom.