Glassnode Says Bitcoin Rebound Has Weakened Support Below $80,000
Bitcoin has rebounded on the back of large buy orders, but buying interest that could prevent a deeper drop below $80,000 is weakening, according to Glassnode.The on-chain analytics firm wrote on X on Oct. 15 that large buy orders clustered at $80,000 were filled over the past week. Fresh large orders then helped lift the price, but support below $80,000 is weakening again.The comment suggests investors should distinguish between buying that drives a rebound and resting bids meant to cushion further declines. Even if orders push prices higher in the near term, the market may struggle to absorb renewed selling pressure if there is not enough demand built up at lower levels.Glassnode had already identified $80,000 as a key line of defense in its weekly report published on Oct. 14. The price level with the biggest concentration of buy orders on Binance's spot market had slipped to $80,000 from $81,000. At the time, it estimated the average purchase price for U.S. spot Bitcoin exchange-traded funds at about $81,500.The concern is that just below $80,000 sits a concentrated liquidation zone for futures positions betting on further gains. If Bitcoin falls through that level, forced selling from undercollateralized positions could deepen the decline. As a key level to watch in the event of further losses, Glassnode pointed to about $78,000, which it described as the "realized market mean," or an estimate of the average cost basis of actively trading investors.For the rebound to continue, the market needs more than standing buy orders. It also needs real spot demand. Glassnode said spot ETFs have swung back to net outflows, adding that sustained inflows into the funds would be the key signal confirming a recovery in demand.