The leading cryptocurrency, Bitcoin, briefly fell below the $80,000 level following better-than-expected US economic data. However, this decline was short-lived, and $BTC resumed its upward trend.
While this situation has sparked debate about whether $BTC is forming a new short-term low, a new analysis has emerged from the on-chain analytics company Glassnode.
Glassnode notes that the data shows buy orders at the $80,000 level supported the price recovery, but questions remain about the sustainability of this support.
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Glassnode reported that after Bitcoin briefly dropped below $80,000, large buy orders that had been waiting around $80,000 in the Binance $BTC/USDT spot order book for the past week were filled. Even new large buy orders were entered.
Glassnode noted that $BTC subsequently recovered gradually, but buy orders below $80,000 were weaker compared to previous levels. This suggests that downward pressure could increase if the price retests the same region.
Past Selling Waves Coincided with Lows!
Glassnode’s data indicates that stop-loss orders increased in early and mid-August and mid-September, with each event coinciding with Bitcoin forming a short-term bottom. Following the August sell-off, the price rose to the $80,000 level, while a recovery above $85,000 occurred after the September drop.
Glassnode also stated that profit-taking has decreased since Bitcoin’s peak in September. According to the company, if this pattern repeats, the sell-off seen yesterday around $80,000 could indicate a short-term bottom for the current correction.
At this point, Glassnode’s assessment suggests that a drop below $80,000 could increase selling pressure and bring the $78,000 level into play. Therefore, the potential bottom is not yet certain.
*This is not investment advice.
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