Bitcoin has surged more than 12% since last week’s sharp drop to $80,000, offering a brief reprieve after an intense period of capitulation. However, fear and uncertainty continue to dominate market sentiment, following what analysts describe as the largest short-term holder capitulation in Bitcoin’s history.
This aggressive wave of realized losses has left many investors questioning whether the recent bounce is sustainable or simply a temporary reaction in a broader downtrend.
Supply Clusters Pose Key Resistance Levels
Data from Glassnode highlights that Bitcoin’s path forward remains challenging. The cryptocurrency must overcome major supply clusters created by top buyers earlier in the cycle to regain meaningful upward momentum.
The first supply cluster sits between $93,000 and $96,000, while a larger, structurally important cluster spans $100,000 to $108,000. These zones formed where many investors previously bought BTC at higher prices and are now near breakeven. As Bitcoin approaches these levels, selling pressure may intensify, creating temporary resistance walls that could slow the recovery.
“These ranges typically act as strong resistance, as recent buyers who endured the drawdown may choose to sell once the price returns to their entry levels,” Glassnode noted.
Bitcoin’s ability to break through these clusters will largely determine whether it can re-establish a path toward a new all-time high or remain trapped under distribution pressure. A clean breakout would signal renewed confidence, while rejection could indicate that the broader corrective phase is not yet over.
Testing Support After Sharp Selloff
On the weekly chart, Bitcoin shows signs of stabilizing following one of the most aggressive drawdowns of the cycle. BTC rebounded to around $91,500 after dipping to $80K last week, reflecting strong buyer demand at critical support. This rebound coincides with a weekly candle showing a long lower shadow, a classic technical signal of demand absorption during heavy selloffs.
Despite this bounce, the broader structure remains fragile. The price is still trading below the 50-week moving average, which previously acted as reliable support during the bull phase. Losing this dynamic support earlier in the month marked a significant technical break, and reclaiming it from below is often challenging, as such levels frequently act as resistance.
The 100-week moving average, near the mid-$80K region, has held as a critical support zone, halting the decline and preventing confirmation of a deeper macro reversal.
Volume remains elevated, reflecting capitulation-level activity, and the market is now at a decisive juncture. A sustained close above $92,000–$94,000 would bolster recovery prospects, while rejection at these levels could lead to another retest of the $80K support floor.