Glassnode said the return of waves of selling at a loss that coincided with Bitcoin’s previous three local lows could point to a floor just above 80 thousand dollars if the same pattern continues.
The on-chain analytics firm compared the sell-off seen the previous day with similar periods in August and September in a post on October 16. The assessment focuses on the relationship between waves of investors selling at a loss and short-term price lows.
What happened during the previous three selling waves?
According to Glassnode, waves of selling at a loss in early August, mid-August, and mid-September coincided with local lows. The firm also noted that profit-taking has slowed since the September peak.
Considered alongside these past examples, the latest selling may have accompanied the formation of a floor in the price. What stands out here is not the size of the selling, but the point in the price cycle at which it emerged during previous periods.
Could a bottom have formed around 80 thousand dollars?
In the firm’s view, if the pattern repeats, the selling on October 15 just above 80 thousand dollars could mark the period in which a new local floor formed.
This assessment is not a determination that Bitcoin’s decline has definitively ended; it is a conditional comparison with the previous three periods. The possibility highlighted by Glassnode is that selling at a loss may once again have been concentrated around a short-term price low.
Not investment advice.