Bitcoin recently experienced a sharp reversal after failing to break through the $87,100 resistance level that has previously capped its recovery. Following the push into that zone, the cryptocurrency dropped nearly 4% toward $83,800 as selling pressure intensified.
Despite the decline, the price pullback held above the $82,900 to $83,000 range floor, keeping the broader recovery structure intact. The Relative Strength Index (RSI) also decreased from near overbought levels to around 52, signaling that the September rally has lost momentum rather than undergoing a full reversal. Currently, Bitcoin is testing whether buying interest can sustain the cost basis zone between $84,000 and $86,500.
Holding this support zone could pave the way for another attempt at resistance. However, a drop below $83,000 would weaken the recovery and potentially expose the $80,000 level to increased downside pressure.
Profit-Taking Mounts Among Short-Term Holders
Market pressure is increasingly shifting from technical resistance to profit-taking. Short-Term Holders (STH) faced growing incentives to sell as their 7-day average realized profit surged from $136 million to approximately $1.05 billion.
This sharp increase in realized profits creates an environment where current buyers can secure substantial gains, thereby increasing supply at current price levels. This dynamic explains the difficulty Bitcoin faced in maintaining positions above $87,000 and highlights the necessity for sustained market demand. If profit-taking subsides, supply constraints could ease and allow buyers to regain lost momentum.
Accumulation and Distribution Bands Narrow
Meanwhile, Bitcoin's rebound has coincided with a narrowing of both accumulation and distribution bands. This contraction suggests that previously active groups of buyers and sellers are currently making fewer significant changes in their positions.
This setup has developed as the price of BTC advanced toward $85,000, indicating that market participants are gradually re-entering positions rather than aggressively liquidating them. Maintaining this equilibrium could provide demand with a clearer path to challenge the $87,000 resistance level once again, whereas a resurgence in selling activity would likely limit potential upside.
