Bitcoin Hits $83K Sell Wall as Ethereum Keeps Leaving Exchanges

Bitcoin and Ethereum are currently showing a striking divergence in investor behaviour. While increasing amounts of Ethereum are being pulled from exchanges, the amount of Bitcoin on exchanges is, by contrast, edging slightly higher. At the same time, Bitcoin faces a key test around the $83.000 to $86.000 level, where more than 1 million BTC held by long-term holders now sits close to their average purchase price after months of price declines.

1.05 Million Bitcoin Waiting Above the Current Price

Glassnode identifies the first major cost basis zone above the current Bitcoin price of roughly $79.000 in the $83.000 to $86.000 band. That range contains around 1.05 million BTC held by long-term holders.

These coins stand out because their owners have held them throughout the entire decline. Now that Bitcoin is moving back towards their average purchase price, the question arises whether this group will stay put or finally decide to sell around breakeven.

The zone could therefore act as solid resistance. If part of that 1.05 million BTC comes to market, additional selling pressure will emerge. If long-term holders instead remain patient and Bitcoin breaks through $86.000, a significant potential sell wall would fade.

On the downside, meanwhile, Glassnode sees a solid base. Around $62.000 to $65.000, recent market participants have bought roughly 1.44 million BTC. According to the chart, nearly two thirds of this short-term holder supply has its cost basis there.

Ethereum Investors Take a Different Direction

With Ethereum, meanwhile, a very different picture is emerging. Data from Santiment show that investors have removed around 1.4 million ETH from exchanges since 3 June. The balance has fallen from roughly 7.69 million ETH to about 6.28 million ETH as of 27 August, a decline of approximately 18%.

Strikingly, this outflow did not stop when Ethereum began to rise. Since 19 August, another roughly 275,000 ETH has left exchanges, even as ETH has risen around 27% since 16 August.

That could suggest many owners are in no rush to sell their Ethereum despite the price gains. Coins that leave exchanges are, after all, less immediately available for sale, although a withdrawal in itself does not automatically mean an investor intends to hold for the long term.

Bitcoin Supply on Exchanges Is Instead Creeping Higher

With Bitcoin, the opposite is happening. According to Santiment, the BTC balance on exchanges is around 0.25% higher than at the start of June and sits close to the upper end of its recent range.

That divergence becomes all the more relevant as Bitcoin heads towards the major cost basis zone of $83.000 to $86.000. More available BTC on exchanges, combined with 1.05 million BTC from long-term holders around breakeven, could together create selling pressure there.

For Bitcoin, the $83.000 to $86.000 area thus becomes a key test. Ethereum, by contrast, now has an ever smaller supply directly available on exchanges, meaning the two largest cryptocurrencies currently present clearly different supply pictures.