Bitcoin Bleeds Red: $90K Support Crumbles Again

• Overhead resistance at the key cost basis prevents Bitcoin from sustaining gains.
• Low-conviction selling pressure keeps BTC trapped in a consolidation range.
• Macro volatility and profit-taking push Bitcoin back under $90,000 mark.

Bitcoin’s recent attempt to break higher has stalled. The cryptocurrency dropped below $90,000 amid significant selling pressure near $98,000.

The digital asset had shown promise at the start of the year. Prices climbed from lower levels and briefly touched $98,000 last week. However, the rally lost momentum when it reached a critical price zone where many recent buyers had originally purchased their holdings.

Recent Buyers Create Selling Wall

Onchain analytics firm Glassnode identified the problem in its latest analysis. The resistance zone around $98,000 represents the average cost basis for short-term holders. This group of investors has shown a willingness to exit positions rather than hold through further gains.

The pattern resembles market dynamics from early 2022. During that period, bitcoin struggled repeatedly to move past similar overhead supply zones. Each failed attempt extended the consolidation phase and prevented meaningful upward momentum.

Data shows most sales come from investors who bought between early and mid-2025. These holders are now distributing their positions as prices return to their entry levels. Loss realization has concentrated among those holding for three to six months. Profit-taking has emerged as traders secure modest gains rather than wait for larger moves.

Bitcoin loss realization, Source: Glassnode

Glassnode analysts describe this behavior as characteristic of low-conviction markets. The supply overhang continues to cap rallies and make each bounce vulnerable to renewed selling.

Modest Improvement in Spot Markets

Some positive signals have emerged despite the failed breakout. Selling pressure on major exchanges has decreased. Cumulative volume delta metrics indicate more buy-side activity. Coinbase-led distribution has slowed after months of persistent outflows.

However, Glassnode maintains a cautious outlook. Accumulation remains selective rather than broad-based. The firm notes that current demand levels fall short of levels typically required for sustained uptrends.

Institutional activity has been inconsistent. Corporate treasury purchases have occurred sporadically and appear event-driven. This source of demand provides only marginal support to the market. Derivatives markets show similar restraint. Futures volumes remain compressed, and leverage deployment stays subdued.

Options markets reflect the cautious sentiment. Volatility repricing has focused on very short-term contracts. Medium and long-dated expectations have changed little, suggesting traders see limited near-term catalysts.

The breakdown coincided with broader market volatility. Bitcoin fell below $90,000 as global risk assets declined. Turmoil in Japanese government bonds and rising geopolitical tensions triggered widespread deleveraging.