Analytics firm Glassnode has published a detailed report on the Bitcoin market. Bitcoin 's August rally has stalled at a strong resistance zone. The price pulled back to the $76,000 level. The catalyst was a renewed rise in U.S. Treasury yields. On August 19, the market experienced its largest liquidation wave since 2019. The impulse pushed the price above $80,000. However, Bitcoin encountered dense supply above that level. The reversal to the downside triggered a series of long position liquidations.
The liquidation map shows a symmetrical structure around the current price. The upward impulse flushed out short positions in the market. The impulse fell short of the liquidation cluster between $83,000 and $86,000. Below spot, the long liquidation volume remains untouched. That volume is situated between $60,000 and $63,000. The price is currently trading within this broad corridor. Additional pressure is created by the profitability distribution across the entire network. In May, approximately 65% of the network was in profit. By late August, that share had grown to 68%. Summer accumulation pushed the cost basis of short-term holders up to $71,000.
From below, an accumulation zone between $62,000 and $65,000 provides support. From above, supply from long-term holders constrains further gains. The price remains compressed between these key levels. Bitcoin spot funds continued to attract capital during the rally. The seven-day average inflow grew to $290 million per day. However, secondary trading activity tells a completely different story. Trading volume held at the $3 billion level. Capital inflows without sustained momentum coincide with reversals.
The macroeconomic backdrop quickly returned to a restrictive state. The yield on ten-year Treasuries temporarily dipped to 4.6%. Over eight sessions, it climbed back to 4.8%. Government debt pressure remains the primary driver for interest rates. Bitcoin briefly decorrelated from equity markets. Correlation with the S&P 500 index fell to zero. The seven-day deviation spiked sharply during the market frenzy. The indicator then quickly returned to neutral values. The 180-day deviation remained stable throughout the entire move. The quarterly options expiration is scheduled for September 25. It accounts for approximately $14 billion in open interest. Open interest is concentrated on the Deribit and IBIT exchanges. A significant portion of positions is concentrated above $80,000.
The Federal Reserve will hold its meeting on September 16. This event will take place nine days before the expiration. The rate decision could shift the trajectory of bond yields. The market will need to price in two scenarios simultaneously. The coming weeks will reveal the strength of the current market consolidation.
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This material is prepared for informational purposes only and does not constitute financial advice or a recommendation.