Bitcoin Surpasses $85K Sell Wall Amid Rising US Factory Costs

Bitcoin has recently broken through a critical sell wall at $85,000, which may enhance its potential for upward price movement. According to data from Glassnode, this sell wall on Binance had seen a significant increase in size in the days leading up to its removal, creating a substantial barrier for buyers.

The sell wall, defined as a large concentration of limit sell orders at a specific price, had been a major obstacle for Bitcoin's price. Following a brief surge above $85,000 on September 21, driven by substantial short liquidations, Bitcoin struggled to maintain its position above this threshold.

Compounding the situation, recent reports from the Institute for Supply Management indicate a spike in US factory input costs, which could influence investor expectations regarding interest rates. The manufacturing prices index rose to 77.9 in September, suggesting increased cost pressures that may complicate the case for lower interest rates. This development could impact Bitcoin's rally, as higher borrowing costs may deter risk-taking and make interest-bearing dollar assets more attractive.

As Bitcoin navigates this critical juncture, traders are advised to monitor the order book depth around the $85,000 to $85,500 range, as well as the behavior of long-term holders and ETF inflows, which have shown signs of cooling.