New Delhi: Bitcoin remained under pressure around the $65,000 mark on August 8, with short-term holders emerging as a potential source of renewed selling pressure. The cryptocurrency had recovered from its late-July lows, but its inability to establish a firm position above $65,000 has raised concerns about whether the latest rebound can develop into a broader recovery.
According to crypto.news, Bitcoin was trading near $65,015 at the time of its report, after repeatedly testing the $65,000 level. The cryptocurrency had recovered from a low of around $62,200 recorded on August 2, but sellers continued to defend the area above $65,000.
The market is now closely watching the $67,500 region, where the realised price of short-term Bitcoin holders is creating a key resistance zone. Analysts believe investors who purchased Bitcoin at higher levels could look to sell if the price returns close to their breakeven point.
Bitcoin struggles to turn $65,000 into support
Bitcoin’s recent recovery has improved its short-term technical picture, but the cryptocurrency has not yet confirmed a decisive change in its broader trend.
At the time of the report, Bitcoin was trading above its 20-day simple moving average of $64,461 and its 50-day simple moving average of $63,363. These levels provide an initial support zone between approximately $63,300 and $64,500.
However, Bitcoin remained below its 100-day moving average at $68,052 and its 200-day moving average at $70,295. The structure suggests that while buyers have regained some momentum in the short term, the cryptocurrency is still facing significant resistance before a broader recovery can be confirmed.
Bitcoin had previously reached approximately $82,000 in May before entering a prolonged decline. The recent recovery from the August 2 low therefore represents an improvement, but it has not yet reversed the wider weakness visible on the daily chart.
Short-term holders could add selling pressure
One of the most important levels for Bitcoin traders is currently $67,523. According to CryptoQuant analyst Axel Adler Jr, this represents the realised price, or average acquisition cost, for short-term holders.
On August 8, Bitcoin was trading at around $64,952, leaving it approximately $2,571, or 3.8%, below the short-term holder cost basis.
The gap was the narrowest since July 21, bringing a larger number of recent buyers closer to breakeven. If Bitcoin rises towards $67,500 without generating enough buying momentum to push through the level, some investors could use the recovery as an opportunity to exit their positions.
Adler noted that Bitcoin had closed below the short-term holder realised price on 279 of the previous 284 days. He warned that selling pressure could increase as the cryptocurrency approaches the cost basis.
This does not guarantee a sharp decline, but the $67,523 level has become an important area for the market. Bitcoin would need to absorb potential selling from short-term holders and establish support above that level to improve its medium-term outlook.
Technical indicators offer some support
Despite the concerns surrounding resistance, Bitcoin’s shorter-term technical indicators remain relatively constructive.
On the four-hour chart, Bitcoin was trading above the Bollinger Band midline at approximately $64,647 and close to the upper band at $65,257. A sustained four-hour close above the upper band could open the door for a move towards $65,600 and then $66,000.
The Relative Strength Index stood at 61.83, above its moving average of 59.25. The reading suggests that buyers currently have the momentum advantage, while Bitcoin has not yet entered technically overbought territory.
However, the daily picture remains less decisive. The Aroon Up indicator stood at 50%, while Aroon Down was at 14.29%. Although the difference favours buyers, the moderate Aroon Up reading does not provide confirmation of a strong daily uptrend.
For Bitcoin to strengthen its immediate outlook, traders will be watching whether the cryptocurrency can first turn $65,000 into support and then clear the $65,250-$65,600 range.
Key support levels remain below $65,000
A rejection from the current resistance area could send Bitcoin back towards the Bollinger Band midline near $64,647. A further decline could expose the lower band around $64,037.
The next important support is around $63,360, close to Bitcoin’s 50-day simple moving average. Beyond that, analysts are watching the $62,000-$63,000 demand zone.
A sustained break below this region could expose Bitcoin to further weakness, with another support area around $59,000.
On the upside, $65,600 is an important near-term level. A decisive move above it could trigger a short squeeze as leveraged short positions are liquidated, potentially pushing Bitcoin towards $66,000.
The larger resistance zone remains between $67,500 and $67,600 because of the short-term holder cost basis. Bitcoin also faces additional resistance from its longer-term moving averages above $68,000.
Liquidation clusters could influence Bitcoin’s next move
Market liquidity is concentrated on both sides of Bitcoin’s current price, adding another layer of uncertainty to the short-term outlook.
According to a one-week liquidation heatmap from CoinGlass cited by crypto.news, a significant upside liquidity cluster is located around $65,500-$65,700. A move through this zone could force the liquidation of short positions and accelerate buying momentum.
Additional liquidity exists above $66,000, although the concentration is comparatively weaker.
On the downside, larger clusters are positioned around $63,700-$63,900 and near $63,000. These levels could become targets if Bitcoin loses the $64,000 area and fails to regain momentum.
This leaves Bitcoin caught between competing pools of leveraged liquidity. A breakout above $65,600 could favour bullish momentum, while a move below $64,000 could increase the probability of a test of the $63,000-$63,800 region.
Weekend trading adds another layer of uncertainty
Bitcoin’s weekend performance could also be significant because traditional US-regulated Bitcoin products do not trade during the weekend in the same way as the continuously operating spot market.
For US investors, spot Bitcoin ETFs and CME futures are closed over the weekend. A sharp move in Bitcoin’s spot price before Monday could therefore create a gap when regulated markets reopen.
The immediate bias remains mildly bullish as long as Bitcoin holds above approximately $64,000. However, the cryptocurrency still needs to overcome several important barriers before the recent recovery can be considered a stronger trend reversal.
What lies ahead for Bitcoin?
Bitcoin’s position around $65,000 has created a crucial test for the cryptocurrency. Buyers have managed to recover from the August 2 low near $62,200, but they have so far struggled to establish a decisive breakout above $65,000.
The $65,250-$65,600 range represents the first major hurdle. A successful breakout could take Bitcoin towards $66,000 and eventually the $67,500-$67,600 short-term holder cost basis.
On the other hand, failure to hold above $64,000 could expose the cryptocurrency to support around $63,000-$63,800. A deeper breakdown could bring the $62,000-$63,000 demand zone into focus.
For now, Bitcoin remains in a delicate position. Short-term momentum favours buyers, but the potential for holder selling near $67,523 means the recovery still faces a significant test. Traders will therefore be watching both price and trading volume closely as Bitcoin attempts to determine its next major direction.
This article is for informational purposes only and does not constitute investment advice.