Bitcoin Faces Strong Resistance Near $87K, Analysis Reveals Liquidation Clusters
Bitcoin is encountering persistent resistance near the $87,000 mark, according to recent analyses from Glassnode and Binance. This resistance is largely attributed to holders who purchased Bitcoin in late 2025, with a notable concentration of selling pressure around the $87K to $88K range.
Resistance Levels and Market Dynamics
Glassnode's research indicates that the average cost basis for holders who bought in late 2025 is approximately $88K. As Bitcoin approaches this level, many underwater buyers are incentivized to sell, leading to repeated failures to maintain price above this threshold. The tightest resistance is identified between $87K and $87.8K.
Additionally, there is a secondary layer of selling pressure from holders in the 1-2 year bracket, who have a cost basis near $100K. This suggests that any upward movement may face further resistance as these holders might look to exit their positions at breakeven.
Current Trading Range and Support Levels
Currently, Bitcoin is trading between $82K and $84K, with mixed trading volumes and flows into US spot Bitcoin ETFs. Glassnode notes a reduction in selling pressure from older holders, indicating a consolidation phase where long-term holders are holding their positions while recent buyers limit potential gains.
Support levels are identified at approximately $81.5K, which corresponds to the cost basis of US spot ETF holders, and the True Market Mean, estimated between $77.5K and $78K. A drop below these levels could signal a shift in market dynamics.
Liquidation Clusters and Market Implications
According to Binance data, significant liquidation clusters are forming around the $87K mark, with major liquidation pressure noted between $87K and $92K. As of late October, approximately $289 million in short liquidations is positioned between $82.8K and $86.9K, indicating that a price increase could force these short sellers to buy back, potentially adding upward momentum.
Conversely, a decline below $82K could trigger substantial long liquidations, particularly impacting ETF holders who would fall below their breakeven point. Traders are advised to monitor Bitcoin's ability to close above $87K and the flow of ETF investments in the $82K to $86K range.
Updated 15:03 UTC
Latest Insights on Bitcoin and Market Trends
- Bitcoin has surpassed $84K, gaining 1.2% over 24 hours, while Ethereum rose 0.6% to around $2,474.
- SpaceX reported a staggering 161% increase in revenue, reaching $15 billion, contributing to a broader risk appetite in the market.
- The US Treasury yields dropped approximately 3 basis points, enhancing the appeal of riskier assets like Bitcoin.
- The Alternative.me Fear and Greed Index registered a score of 63, indicating a sentiment of 'Greed' but with cautious optimism.
- Quantum-resistant tokens emerged as the top performers, surging 51.8% over the past week, highlighting speculative interest in niche themes.
- Despite the daily gains, Bitcoin remains down 0.4% over the past week, suggesting a need for confirmation of a new upward trend.
Updated 16:03 UTC
Latest Developments in Bitcoin Market
Bitcoin's price surged above $84,500, reaching $84,461, with a 24-hour increase of 2% and a 7-day increase of 3%.
SpaceX reported a remarkable third-quarter revenue of $14.6 billion, marking a 161% year-over-year growth, which has positively influenced investor sentiment.
U.S. investors have invested over $549 million into spot bitcoin exchange-traded funds managed by major firms like BlackRock and Fidelity this week.
Despite the recent gains, Bitcoin's price remains over 30% below its all-time high of $126,080, achieved in October 2025.
Analysts suggest that Bitcoin is now back in a bull market after a prolonged bear phase throughout most of the year.
Updated 16:03 UTC
Latest Insights on Bitcoin and Economic Factors
- Economists overwhelmingly predict a Federal Reserve rate hike in December, with nearly 60% forecasting rates reaching 4.00%–4.25%.
- 94 out of 100 economists expect the Fed to maintain rates at 3.75%–4.00% during the upcoming meeting on October 27–28.
- Bitunix warns that higher oil prices and restrictive monetary policy could negatively impact Bitcoin prices due to increased financing costs and tighter dollar liquidity.
- Iran's refusal to negotiate until certain conditions are met is contributing to ongoing oil risks, particularly ahead of the U.S. midterm elections on November 3.
- President Trump's proposed $8 billion in farm aid may complicate inflation containment efforts amid rising energy and tariff costs.
- The S&P 500 is currently about 1.6% below its record high, while the Philadelphia Semiconductor Index has seen a decline of approximately 14% since October 6.
- Bitcoin was trading near $84,000, reflecting a 2% increase over the past 24 hours, despite growing expectations for further Fed tightening.
FAQ
What is the current resistance level for Bitcoin?
Bitcoin is facing strong resistance near the $87,000 mark, with significant selling pressure concentrated between $87K and $88K.
Why is there selling pressure around the $87K level?
The selling pressure is primarily from holders who purchased Bitcoin in late 2025, with an average cost basis around $88K, incentivizing them to sell as the price approaches this level.
What are the current support levels for Bitcoin?
Current support levels are identified at approximately $81.5K, with additional support at the True Market Mean estimated between $77.5K and $78K.
What are liquidation clusters and how do they affect Bitcoin's price?
Liquidation clusters are areas where significant amounts of leveraged positions could be liquidated. Currently, there is major liquidation pressure noted between $87K and $92K, which could impact Bitcoin's price movement.
What should traders monitor regarding Bitcoin's price action?
Traders should monitor Bitcoin's ability to close above $87K and the flow of ETF investments in the $82K to $86K range, as these factors could influence market dynamics and price movements.
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