On-chain analytics platform Glassnode reported that the Bitcoin price continues to remain above significant cost floors, but weakening spot ETF inflows, low trading volume, and accumulated sell orders in the $85,000-$85,500 region are limiting the upside.
According to Glassnode’s latest assessment, spot Bitcoin ETFs traded in the US saw net inflows of approximately $1 billion on two separate days in the latter part of September. However, this strong demand subsequently weakened significantly, and the Bitcoin price began to exhibit a sideways trend.
The report noted that investor profit-taking remains at a low level compared to past market peaks. However, it highlighted that long-term Bitcoin investors increased their selling this week.
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While Bitcoin has outperformed the S&P 500 index on most of the last 30 trading days, it has been noted that Bitcoin experienced a sharper decline compared to stocks during this week’s pullback.
According to Glassnode, the most important resistance zone in the short term is between $85,000 and $85,500. It is noted that concentrated sell orders in this region are putting pressure on the Bitcoin price, while the first significant support level on the downside is indicated as the “Real Market Average” level at $77,200.
The report also added that total Bitcoin trading volume is near the lower end of the range seen since the launch of US spot Bitcoin ETFs. Glassnode stated that the low volume indicates that the current bullish movement is still in its early stages and largely speculative in nature.
The altcoin market, however, has shown stronger performance compared to Bitcoin over the past month. Glassnode notes that the rise in altcoins occurred without excessive speculation or new leverage accumulation, but also states that this movement has lost momentum in the last week.
*This is not investment advice.