Glassnode Reports Bitcoin Faces Resistance at $88K Amid Declining Selling Pressure

Bitcoin is currently facing growing resistance near the $88,000 threshold, according to a report from blockchain analytics firm Glassnode. The report, dated October 14, indicates that this resistance is compounded by recent trends of net selling in exchange-traded funds (ETFs) and rising inflation in the U.S. market.

Glassnode identifies the $80,000 to $81,500 range as a crucial support zone, where Bitcoin has shown resilience despite pressures from investors who bought in over the past two years. These investors are creating selling pressure as they seek to exit positions near their original purchase prices. The report highlights that Bitcoin must recover above $88,000 to alleviate this selling pressure.

Recent data shows that institutional demand for Bitcoin has weakened, with U.S. spot Bitcoin ETFs experiencing nearly $3 billion in net inflows from September 21 to October 6, only to reverse with approximately $760 million in net outflows starting October 7. Glassnode suggests that a sustained return of ETF inflows could be crucial for confirming that buyers are absorbing the selling pressure.

Despite the challenges, Bitcoin has maintained key support levels, with significant buying orders identified around $80,000 on Binance. The report also notes that selling pressure from long-term holders has eased, with realized losses dropping significantly since mid-August.

In light of the recent U.S. inflation report, which indicated a 0.6% increase in the Consumer Price Index for September, expectations for another Federal Reserve interest rate hike have risen. The next monetary policy decision is set for October 28, coinciding with the U.S. midterm elections on November 3.

Glassnode outlines two critical levels for Bitcoin's future trajectory: a sustained recovery above $88,000, supported by renewed ETF inflows, could indicate that buyers are absorbing selling pressure, while a break below $80,000 could lead to further declines toward the True Market Mean near $78,000.