Bitcoin’s failed breakout reveals a dangerous mix of thin volume and easy profits
Summary
Bitcoin fell nearly 5% this week to about $83,100 after failing to hold above $85,000, amid unusually weak trading activity and profit-taking by recent buyers. Glassnode said spot and U.S. spot ETF trading averaged $6.8 billion daily over the week through Oct. 6, below 90% of daily readings since January 2024. On Oct. 4, short-term holders accounted for 86% of Bitcoin sent to exchanges, though transfers do not confirm sales. CryptoQuant estimates 92% of short-term holders remain in profit; buyers from one week to one month ago have an average cost basis near $81,900. Analysts cited a need for stronger spot and ETF demand to absorb potential selling. The $85,000 resistance and $81,900 cost basis are key levels to watch.
