Glassnode Observes Easing Bitcoin Seller Pressure

Bitcoin prices are caught between support at $65,000-$70,000 and resistance at $79,000.

The price of digital gold is caught between the support zone of $65,000-$70,000 and resistance at $79,000. Analysts at Glassnode have noted a record number of short positions and a high likelihood of a short squeeze.

The price of the underlying asset failed to hold above the true market average price ($79,000). As it approached this mark, short-term investors began actively taking profits—reaching $4 billion per hour. This absorbed buyer liquidity and halted the rise.

A key support is the accumulation cluster in the range of $65,000 to $70,000. Losing this zone would worsen the short-term prospects of the leading cryptocurrency, experts noted.

The difference in buying and selling volumes on the spot market is returning to neutral values. Seller pressure is decreasing, and institutional investors are gradually returning. The volume of assets in spot bitcoin ETFs and open interest on the CME are rising after a prolonged period of outflows, specialists stated.

Bearish sentiment dominates the perpetual futures market, with traders actively opening short positions. Experts consider this scenario favorable for forced short covering with the slightest increase in spot demand.

Bitcoin volatility is decreasing, and demand for price drop insurance has fallen. Options market participants are betting on a rise above $80,000. Breaking this resistance will force market makers to buy the asset to hedge risks. Until new capital appears in the spot market, digital gold will continue to trade in a narrow range, Glassnode concluded.

Back in April, bitcoin and many other crypto-assets declined following the U.S. Federal Reserve’s decision to maintain the interest rate at its current level.