[DigitalToday reporter Yoonseo Lee (이윤서)] An analysis said that even if Bitcoin rebounds, holdings worth about 874,000 BTC could come onto the market and limit gains.

CryptoSlate, a blockchain media outlet, reported on Oct. 27 (local time) that cryptocurrency exchange Bitfinex estimated about 874,000 BTC was accumulated in the $81,000 to $82,500 range. It said that if the price regains that zone, holders seeking to recoup losses around their buying levels could start selling.

Bitfinex assessed that $81,300, which had been a support line, has now turned into resistance. It said that because Bitcoin fell below that level, holdings bought earlier could weigh on the rebound.

It added that the 874,000 BTC is an estimated amount accumulated around that price zone, and that actual sell orders have not been confirmed. Even if only part of it comes to market, a lack of sufficient new buying could limit any price recovery.

Flows into spot Bitcoin exchange-traded funds (ETFs) also failed to show a clear recovery in demand. There was a net inflow of $110.3 million on Oct. 26, but most of the funds were concentrated in BlackRock's iShares Bitcoin Trust (IBIT), while other products recorded no net inflows or outflows. Total outflows of $773.5 million were tallied over the prior 2 trading days, leaving a net outflow of about $663 million over the past 3 trading days. A one-day shift to net inflows makes it hard to say institutional demand has broadly recovered.

In the end, it said the factor that will determine whether the rebound can be sustained is spot buying that can absorb potential supply. The analysis said inflows into ETFs need to spread beyond IBIT to other products, and steady buying also needs to support the spot market for prices to break through the resistance zone.

It said the core of this observation lies in how diversified the inflows are and the quality of spot demand, rather than the size of inflows. It said that when ETF flows are concentrated in a few products, it is more important to assess whether there is a buying base to actually absorb overhead supply than to focus on the price rebound itself.