Despite rebounding slightly above the $80,000-level, Bitcoin failed to hold above this level. In fact, it has since fallen to the $75K-level, where it has been consolidating for the last three days.
This relief rally was partly driven by liquidation of sell orders, which in turn produced a short squeeze. According to a CryptoQuant report, more than $290 million in shorts were wiped out, amplifying the uptick.
Furthermore, the stablecoin supply fell by about 5% over the past month, implying part of the capital was being swapped for BTC among other cryptos.
For instance, the Drift Protocol hacker went long after swapping $13 million USD Coin [USDC] on Hyperliquid for Bitcoin. Some large wallets were also accumulating the token even though the apparent demand remained negative, showing the market did not absorb available BTC.
However, Bitcoin did not hold above $80K despite this mild buying activity. This observation could be attributed to a couple of on-chain factors.
Why can’t Bitcoin hold above $80,000?
The report further observed that spot demand has remained weak, as the monthly average net spot volume delta was at -$28 million and -$9.40 million on Binance and Coinbase, respectively.
In addition, short-term holders have been moving their holdings to exchanges this month. While these transfers of about 32.70K BTC do not prove sales, they do imply looming selling pressure.
Moreover, institutional demand through BTC ETFs fell flat, with $412 million in net outflows recorded. The largest single outflow came from BlackRock’s IBIT, where traders sold $403 million in BTC.
Further analysis of the Hyperliquid exchange revealed that whales have been adding shorts. The net positioning turned bearish after seven months of being bullish.
The last time BTC had such a huge short exposure was in October 2025, when the price crashed to $60K thereafter. These bearish bets have simply added to the pressure.
Finally, the Coinbase Premium Index, which tracks both Coinbase and Binance for the U.S market, has stayed negative.
Can returning buyers reverse Bitcoin’s decline?
BTC’s price action at press time revealed a sideways consolidation since the crash to $75,000. The returning mild accumulation could offset bearish positioning and sustain a recovery.
However, there need to be improvements in the apparent demand, ETF inflows, and U.S buying pressure.
Final Summary
- Bitcoin slid back to $75K, a few days after reclaiming $80K as support.
- BTC is struggling to hold above $80K due to weak spot demand, ETF outflows, and selling by short-term holders.