Short squeeze retreats, Bitcoin meets resistance at $80K: Sovereign yield highs lock in range-bound trading

Original Author: Glassnode

Original Translation: AididiaoJP, Foresight News

Following the brief market euphoria triggered by the mid-August short squeeze, Bitcoin quickly stalled beneath the overhead supply zone accumulated by long-term holders. With sovereign bond yields hitting fresh cyclical highs and ETF secondary-market turnover remaining subdued, the price has settled back into a well-defined range.

Key Takeaways

• The August short-squeeze rally pushed spot prices to around $80,000 before hitting the anticipated overhead resistance.
• As prices retested the same levels seen in May, the share of supply in profit on-chain rose from 65% then to 68% now, indicating heavier potential selling pressure following summer redistribution.
• Spot Bitcoin ETFs absorbed an average of $290 million per day at their peak, but secondary market daily turnover remains stuck around $3 billion — resembling news-driven impulses lacking sustained momentum rather than structural accumulation.
• Macro headwinds have returned: the US 10-year Treasury yield climbed to 4.8%, erasing all the relief from the Treasury buyback program within just eight trading sessions.
• Short-dated options skew has cooled alongside fading sentiment; the September 25 quarter-end expiry forms a ~$14 billion open interest barrier.