Bitcoin Price Hold Support Zone as Heavy Shorts Dominate Market

• Bitcoin stays below $78K resistance as weak demand limits upside despite easing sales.
• Support at $65K-$70K holds firm, with $68K now the key short-term level to watch.
• Spot selling has eased, while weak demand and elevated short exposure still cap upside.

Bitcoin remained capped below key resistance after failing to hold above the True Market Mean near $78,000. Support stands at $65,000 to $70,000, where buyer activity has built over two months. Spot selling has eased, yet demand remains weak, and short exposure stays high.

According to the Glassnode report on Wednesday, rejection came at the same zone flagged earlier as the main ceiling for the current bear market rally. Price failed to stay above the True Market Mean at $78,000 and the short-term holder cost basis at $79,000. 

$68K Support Holds as Selling Pressure Persists

However, focus has now shifted to support near $68,000. That level marks the -1 standard deviation band of the Short-Term Holder Cost Basis. It stands as the nearest structural support in the short to mid-term.

Source: Glassnode

On-chain data showed how the rejection developed. The 24-hour simple moving average of short-term holder realized profit rose sharply as Bitcoin moved toward $80,000. 

That reading climbed to about $4 million per hour. It was around four times higher than the base level seen since mid-April. The data showed that short-term holders used the rally to sell.

Source: Glassnode

Buyers could not absorb that selling wave. Momentum stalled, and price turned lower. The move confirmed that supply still outweighs demand near the upper range.

Even so, the setup is not fully bearish. A dense accumulation cluster has formed between $65,000 and $70,000 over the past two months. That range reflects steady buyer conviction and may support a short-term rebound.

If buyers defend this area, Bitcoin could move toward the lower edge of the overhead supply zone near $84,000. If that defense fails, the same band becomes the market’s main support reference. Within it, $68,000 remains the key level to watch.

Spot Flows Improve as Short Bias Deepens

Spot market data also showed a change. Spot Volume Delta stayed deeply negative for much of the past few months. That trend reflected steady net selling across exchanges, especially during the drop into the $60,000 to $70,000 range.

Institutional positioning has also started to stabilize. CME Open Interest and U.S. spot ETF assets under management showed early recovery after outflows. ETF position change rebounded from deeply negative levels, while CME open interest began to form a base.

In derivatives, the perpetual market directional premium fell to a record low. This signaled the deepest sustained short bias in the dataset. Recent weakness, heavier hedging, long liquidations, weak spot demand, and softer ETF flows drove the move.

Source: Glassnode

The curve remained in contango, though at a lower level. Traders also kept buying short- and mid-term exposure at the $80,000 strike. With short gamma zones at $76,000 and $82,000, a break above $80,000 could trigger a sharper upside reaction.

Related: Bhutan Speeds Up Bitcoin Selloff With Fresh $7.8M Move