Bitcoin faces true demand test above $83K as liquidity thickens: Glassnode

Bitcoin (BTC) has struggled to flip $80,000 into support in recent days, but bulls’ real challenge is still to come, new research says.

Key points:

• Bitcoin long-term holders add to BTC price resistance below $86,000, Glassnode reveals.
• Buyer demand must overcome this area as Bitcoin struggles to advance beyond $80,000.
• Multiple key trend lines sit around spot price, increasing the implications of an eventual loss or reclaim.

Glassnode: Key overhead liquidity structures sit between $81,000 and $86,000

In the latest edition of its regular newsletter, The Week Onchain, crypto analytics platform Glassnode flagged multiple pools of coins that could be released into the market below $86,000.

Of particular interest are long-term holders (LTHs) — wallets holding BTC without selling for at least six months. 

“Above, the first heavy structure is $83K-86K, and effectively all of it is long-term holder supply that has sat through the entire drawdown,” it wrote, predicting that reaching $83,000 would test the resolve of the LTH cohort not to sell at breakeven.

BTC supply distribution by wallet cohort. Source: Glassnode

In the same zone, new ask liquidity has appeared on exchange order books. Its owners, Glassnode notes, may not intend for their orders to be filled, instead aiming to stay above spot price should it rise further.