Bitcoin Price Faces Resistance Around $87.7K as Key Investor Cohorts Cap Gains
Vexoda Newsroom
On-chain analytics from Glassnode indicate that Bitcoin's ascent is currently being capped by investors who acquired BTC in late 2025, with $87,700 emerging as a critical resistance level.
Bitcoin (BTC) has encountered a significant ceiling around the $87,700 mark, according to recent analysis by on-chain intelligence firm Glassnode. This resistance is attributed to a specific group of investors whose purchase price, or cost basis, lies within this range. These holders, who acquired Bitcoin between one and two years ago, are now facing their breakeven point, creating a substantial barrier to further price appreciation as they may look to exit their positions.
The key players in this scenario are distinct cohorts of Bitcoin holders defined by their acquisition timelines. Glassnode's research highlights two primary groups: those who bought BTC six to twelve months ago with a cost basis around $87,700, and those who purchased one to two years ago with a cost basis near $99,500. When Bitcoin’s price approaches these levels, these investors, particularly those who have seen their holdings in a loss, exert selling pressure as they aim to recoup their initial investment, effectively capping upward momentum.
Understanding these cost bases is crucial for market context. Historically, Bitcoin's price has often faced resistance when it reaches the average purchase price of significant investor groups who are underwater. When the price recovers to these levels, these holders are incentivized to sell, creating a "wall of sell-side pressure." This phenomenon has been observed multiple times, with previous rejections from such cost basis levels leading to significant price retracements, sometimes exceeding a third of the rally's gains.
In response to this resistance, Bitcoin's price action has shown notable reactions. When the cryptocurrency attempted to break through the 6-12 month cost basis resistance in early 2026, it experienced a sharp decline. Similarly, in May of the same year, the 1-2 year cost basis acted as a formidable barrier, halting a rebound and leading to a considerable price drop. The market is now closely watching if the current price level around $87,000, which also coincides with technical indicators like the 2026 opening price and the 20-month moving average, will hold as resistance once again.
This dynamic is significant for the broader cryptocurrency market as it illustrates the interplay between investor psychology, historical price action, and on-chain metrics. The $87,700 resistance level is not just an arbitrary price point; it represents a critical juncture where previous investment decisions are directly impacting current market behavior. Overcoming this level would require substantial new demand to absorb the selling pressure from these long-term holders, potentially signaling a new phase of upward price discovery.
Looking ahead, traders and analysts will be closely monitoring several key levels. Support appears to be strengthening around the $80,000 psychological level, bolstered by the cost basis of US spot Bitcoin ETFs, estimated by Glassnode at $81,500. The true market mean, representing the cost basis for all BTC acquired on secondary markets, sits near $77,500. A decisive break above the $87,700 resistance, supported by robust ETF inflows and overall market sentiment, could pave the way for new price targets, while failure to do so may result in further consolidation or a pullback towards these support zones.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.