Bitcoin is struggling to maintain upward momentum as it tests pivotal resistance zones that traders say will determine the next major move. In earlier sessions, the cryptocurrency was pinned near $64,000–$65,000, where sellers defended strongly and Fibonacci retracement levels guided short-term positioning. More recently, Bitcoin briefly surged above $85,500 but failed to hold the breakout and slipped back toward $84,000.
Liquidation data from CoinGlass shows the recent breakout attempt was helped by forced buying: when BTC pushed above $85,000 earlier in the month, total crypto liquidations reached $1.06 billion over 24 hours, including $844 million of short positions. That short-covering fuel has now faded. Glassnode data shows coin-denominated open interest has fallen almost 20% from August levels and hit its lowest since March, while Bitfinex analysts say perpetual positioning has moved close to neutral.
Resistance around $84,000 to $85,000 is more than technical. Glassnode identifies that zone as Bitcoin’s largest long-term-holder cost-basis cluster, meaning many investors who accumulated near those levels can sell near breakeven or take profits before a sustained breakout. At the same time, US spot Bitcoin ETFs extended their inflow streak to nine sessions through Tuesday, attracting roughly $3.1 billion, but this new demand is being absorbed by existing holder supply.
Macro conditions remain difficult. August PCE inflation rose less than expected, reducing odds of another Federal Reserve increase in October, and Bitcoin initially jumped above $85,500 as Treasury yields eased. However, the relief did not last: the 10-year Treasury yield returned to around 5.28% and the 30-year yield hovered near 5.62% after reaching its highest level since 2002. Analysts including Dominick John of Zeus Research and Dan Khus of LVRG Research note that spot demand and ETF flows, rather than short squeezes, are likely to decide whether Bitcoin can hold above $85,000.
