Bitcoin tested key resistance levels following a sharp rally triggered by softer US inflation data, according to analysis from Glassnode. The cryptocurrency outperformed major US and European equity markets after an extended period of sideways trading near recent lows. Glassnode analysts attributed the move to fading selling pressure and buyers responding more readily to favourable macroeconomic news. The market's behaviour signals a shift in Bitcoin's drivers, with the asset increasingly responding to movements in the US dollar and broader liquidity conditions rather than closely tracking equities.
Bitcoin Outperforms Equities After Inflation Data
Bitcoin reacted more strongly than major equity markets to softer US inflation data, highlighting a growing sensitivity to macro liquidity conditions. The cryptocurrency climbed sharply following the inflation report, outperforming major US and European share markets. Glassnode analysts said the move reflects fading selling pressure and buyers responding more readily to favourable macroeconomic news. The market's behaviour also signals a shift in what is driving Bitcoin, with the asset increasingly responding to movements in the US dollar and broader liquidity conditions rather than closely tracking equities.
Long-Term Holders Reduce Selling Pressure
On-chain indicators show long-term holders have reduced profit-taking. Realised losses among investors who bought Bitcoin one to two years ago have begun reversing after reaching elevated levels. Previous market cycles have shown this trend can coincide with the heaviest phase of distribution coming to an end. Buying activity across both large and small wallets absorbed selling during the decline before easing as prices steadied.
Short-Term Holder Cost Basis Emerges as Key Resistance
The short-term holder cost basis near US$69,000 (AU$100,050) is emerging as the next major resistance level. Glassnode analysts expect a significant market reaction at this level because many recent buyers would be able to exit at break-even. Analysts said stronger spot demand is needed to sustain any recovery beyond this threshold. Derivatives positioning alone is insufficient without stronger buying in the spot market.
US Spot Bitcoin ETF Flows Show Mixed Activity
US spot Bitcoin ETF outflows have eased, with inflows of US$181 million (AU$262.45 million) recorded following US$424 million (AU$614.80 million) in outflows the previous session. Glassnode analysts noted that while ETF flows have improved, derivatives positioning alone is insufficient without stronger buying in the spot market to confirm a lasting recovery.
FAQ
What resistance level is Bitcoin currently testing?
Bitcoin is testing the short-term holder cost basis near US$69,000 (AU$100,050), which Glassnode analysts identify as the next major resistance level where many recent buyers would be able to exit at break-even.
How did Bitcoin respond to recent US inflation data?
Bitcoin reacted more strongly than major US and European equity markets to softer US inflation data, climbing sharply and outperforming traditional share markets following an extended period of sideways trading near recent lows.
What do on-chain indicators show about long-term holder behaviour?
On-chain indicators show long-term holders have reduced profit-taking, and realised losses among investors who bought Bitcoin one to two years ago have begun reversing after reaching elevated levels, suggesting the heaviest phase of distribution may be ending.
