Analysis: Bitcoin May Be Forming a Floor Near $80,000 as Stop-Loss Selloffs Repeatedly Precede Rebounds
Summary
- Glassnode said Bitcoin may have formed a floor around $80,000.
- It said Bitcoin rebounded to the $80,000 level and later the mid-$80,000 range after stop-loss selling surged during declines to the low $60,000s in August and around $75,000 in September.
- Glassnode said the stop-loss selling seen around $80,000 the previous day could signal the bottom of the current decline.
Forecast Trend Report by Period
Bitcoin may have formed a floor near $80,000.
On-chain analytics firm Glassnode wrote on X on Oct. 16 that Bitcoin investors once again sold at a loss the previous day. It added that sharp increases in stop-loss selling in early August, mid-August and mid-September coincided with short-term bottoms.
Data released by Glassnode showed stop-loss selling surged in early and mid-August, when Bitcoin fell to the low $60,000s. Bitcoin later rebounded, rising back to the $80,000 level by late August.
A similar pattern emerged in mid-September. When Bitcoin fell to around $75,000, stop-loss selling increased, but buying later returned and pushed the token into the mid-$80,000s.
Glassnode said the same pattern may be repeating. The stop-loss selling seen around $80,000 the previous day could mark the bottom of the current decline.
Uk Jin
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