Bitcoin’s rebound approaches the $85,000 zone where past buyers may sell

Bitcoin and Ethereum extended their weekend recovery, although on-chain indicators and derivatives positioning suggest the rebound faces significant obstacles.

Data from CryptoSlate showed that Bitcoin briefly climbed above $84,000 after falling toward $80,000 during last week's selloff. Ethereum also recovered above $2,500, reversing part of its recent losses as buying activity returned to the cryptocurrency market.

However, Bitcoin's advance has brought it closer to a major concentration of investor acquisition costs between $84,000 and $85,000, where selling pressure could intensify. Meanwhile, Ethereum's recovery comes as larger derivatives traders appear to be reducing their bullish exposure despite substantial outstanding positions.

Bitcoin's recovery gained momentum during Sunday's trading session as traders appeared to capitalize on a liquidity concentration above the prevailing market price.

CryptoQuant analyst J.A. Maartunn said on Oct. 11 that a liquidity cluster formed just above Bitcoin's trading level, giving traders an opportunity to push prices higher.

According to Maartunn, traders appeared to establish a substantial wall of buy orders beneath the market, providing support as Bitcoin advanced toward the overhead liquidity.