Bitcoin stuck below $82.5K until selling pressure clears, says BitForex founder

Garrett Jin, founder of the cryptocurrency exchange BitForex, which was shut down amid fraud allegations, said Bitcoin is likely to remain rangebound until it can break through a key resistance zone between $80,000 and $82,500. In a blog post published this week, Jin outlined a scenario where BTC could trade sideways for several weeks, allowing the market to absorb overhead selling pressure and reset leverage.

Key levels and market conditions

Jin identified a broad trading range of $72,500 to $84,000 for Bitcoin, noting that a period of consolidation within this band would be healthy for the market. He said a stable daily close above $82,500 would signal that the supply overhang has been absorbed, potentially opening the door for a sustained move higher. Conversely, he warned that a daily close below $76,600—near the average cost basis of short-term holders—could signal weakness, especially if other indicators deteriorate.

ETF inflows provide support

Jin pointed to strong inflows into U.S. spot Bitcoin ETFs as a key source of buying pressure. According to his analysis, these funds recorded approximately $2.8 billion in net inflows over eight consecutive trading days through Aug. 26, bringing total August inflows to about $3.3 billion—the largest monthly total this year. He noted that while sell orders remain concentrated near the top of the range, spot buying is absorbing them, which could help Bitcoin build a base for a breakout.

What to watch for caution

Jin advised caution if Bitcoin posts a daily close below $76,600 and at least two of the following also weaken: ETF flows, the Coinbase premium, and the seven-day average of net realized profit and loss. These metrics, he said, would provide a clearer signal that the market is losing momentum.

Why this matters

Bitcoin’s price action remains a focal point for traders and investors, particularly after a volatile period that saw sharp swings in both directions. The analysis from Jin—despite his exchange’s troubled history—offers a technical perspective on how the market might evolve in the near term. For everyday investors, understanding these key levels and the role of ETF inflows can provide a framework for interpreting market movements, even if the source carries reputational caveats.

Conclusion

Bitcoin’s near-term direction hinges on its ability to close above $82,500, which would signal that selling pressure has been absorbed. Until then, the market may continue to trade within a range, with ETF inflows providing a supportive backdrop. Traders should monitor the $76,600 level and the accompanying indicators for signs of a potential downside shift.

FAQs

Q1: What is the significance of the $82,500 level for Bitcoin?
A daily close above $82,500 would indicate that the supply overhang in the $80,000-$82,500 zone has been absorbed, potentially leading to a sustained upward move.

Q2: How are Bitcoin ETF inflows impacting the market?
Strong inflows into U.S. spot Bitcoin ETFs, totaling about $3.3 billion in August, are providing consistent buying pressure that helps absorb sell orders near the top of the range.

Q3: What should traders watch for a potential downside?
Traders should watch for a daily close below $76,600, especially if accompanied by weakening ETF flows, a negative Coinbase premium, and a decline in the seven-day average net realized profit and loss.