Glassnode says Bitcoin remains capped by $88K holder cost basis despite declining selling pressure

Bitcoin faces growing resistance near $88,000 as exchange traded funds return to net selling and higher US inflation weighs on market sentiment, according to a new report from blockchain analytics firm Glassnode. In its October 14 report, Glassnode identified the $80,000 to $81,500 range as a critical support zone, while investors who purchased Bitcoin over the past two years continue to create selling pressure above current prices. The report comes as Bitcoin struggles to recover following September’s hotter than expected inflation data, which strengthened expectations of another Federal Reserve interest rate increase. Despite these pressures, Glassnode said several onchain indicators suggest the market is entering an early recovery phase, with long term holders reducing their losses and Bitcoin trading above important valuation levels. Bitcoin faces resistance at $88K as ETF outflows accelerate Glassnode identified two groups of investors holding Bitcoin above current prices. Investors who purchased BTC between six and twelve months ago have an average cost basis near $88,000. Meanwhile, those who bought between one and two years ago have a cost basis around $100,000. Both levels...