Bitcoin’s next rally could trigger selling from holders of 874,000 BTC
Bitfinex maps potential overhead supply as ETF inflows return through IBIT alone, leaving spot buyers to prove a durable reclaim. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Bitcoin faces a potential selling hurdle near $82,500, where Bitfinex estimates investors hold 874,000 BTC.
Data from CryptoSlate shows the cryptocurrency fell as low as $79,370 over the past 24 hours after losing its $81,300 support level. It later recovered to $80,102, though further gains could face selling from holders seeking to exit near their purchase prices.
The potential resistance comes as US spot Bitcoin ETF demand remains uneven following substantial withdrawals last week, raising questions about whether buyers can absorb the available supply ahead of Wednesday's Federal Reserve interest-rate decision.
According to Bitfinex's Oct. 26 report, approximately 874,000 BTC was accumulated between $81,000 and $82,500, creating a substantial concentration of holdings above current market prices.
The exchange identified $81,300 as a critical price level that had supported Bitcoin for several weeks before the cryptocurrency closed below it on Oct. 22, 23, and 24.
That breakdown followed a failed recovery toward $84,930 and culminated in Bitcoin falling to $79,250 on Oct. 24, marking a 9.3% decline from its September high.
Bitfinex said the former support level has now become resistance, with investors who previously purchased Bitcoin around that range potentially using subsequent rallies to reduce their exposure.
The 874,000 BTC estimate reflects coins associated with the price range rather than confirmed sell orders. However, even a fraction of those holdings returning to the market could complicate recovery attempts if fresh buying remains limited.
The immediate concern is whether institutional demand can absorb that potential selling pressure.
Early signals from US spot Bitcoin ETFs remain mixed. The funds attracted $110.3 million in net inflows on Oct. 26, entirely driven by BlackRock's iShares Bitcoin Trust (IBIT), while every other listed fund recorded zero net flows.
Monday's inflows followed two consecutive withdrawal sessions totaling $773.5 million, suggesting ETF demand has yet to broadly recover.
The three sessions left the ETFs with approximately $663 million in net outflows, underlining the challenge of sustaining a Bitcoin rebound without stronger buying demand.