Bitcoin Holds Above $60K as Selling Pressure Eases, But Demand Remains Soft

Bitcoin is trading around $63.3K to $63.6K after testing the $62K to $65K range. While the structure remains intact above $60K, demand is still relatively weak.

Short term holders have remained underwater for 98 consecutive days, with an average cost basis near $67.3K and unrealized losses of roughly 6%. However, STH SOPR at 0.996 suggests losses are being realized close to break even, with no signs of deep capitulation.

Exchange selling pressure has also eased. Net inflows fell from +3,507 BTC on August 14 to roughly +29 to +680 BTC in subsequent readings. This decline suggests immediate sell side pressure is moderating.

Derivatives positioning has cooled, with funding rates declining toward 0.00465% to 0.01% and open interest slipping modestly. Leverage has therefore reduced without triggering a major flush.

The main weakness remains spot demand. Recent ETF flows have turned negative, with one weekly window recording approximately $385M in outflows. Institutional demand remains significant, but momentum has weakened.

For now, the market favors continued consolidation around $60K to $65K. A sustained move above this range would require stronger spot demand, ETF inflows and volume.

A break below $60K alongside rising exchange inflows would weaken the structure and increase downside risk toward $50K.

Selling pressure is cooling, but demand still needs to return.

Written by theophiluspep