Bitcoin Sentiment Weakens as Long/Short Crossover Raises Bottom Debate

Bitcoin (BTC) sentiment has weakened while holders recorded approximately $1.03 billion in network realized profit in a single day, with market indicators pointing to continued uncertainty near $85,000.

The profit reading was the second-highest daily level of 2026, just below the annual peak of approximately $1.04 billion. Network realized profit measures gains associated with coins moving on-chain and does not establish that all of the Bitcoin involved was sold for cash.

An estimated invested-capital cost-basis level near $80,500 has emerged as a potential support area. The measure is intended to reflect the level at which invested capital is broadly balanced between profit and loss, using investment and volume rather than purchase price alone. Bitcoin has traded around that level during the past six weeks.

The market is also watching a liquidation-liquidity zone between $83,600 and $85,000. A move into the zone without stronger spot demand could increase the risk of a short squeeze followed by a decline, although that remains a scenario rather than an established outcome.

Bitcoin’s long/short ratio has moved above the ratio for the broader altcoin market. Similar crossovers have been associated with pauses in Bitcoin’s declines and, at times, positive price reactions. The positioning signal does not confirm that a durable market bottom has formed.

The Alpha Crypto Sentiment Gauge fell below 50 after an early-October correction. Alphractal wrote, “Fear hasn’t kicked in yet — neither in Crypto nor in Stocks!”

A sustained move above $85,000, accompanied by stronger on-chain demand and exchange-traded fund flows, would support a more bullish sentiment reading under the current market scenario. The setup follows recent weakness in Bitcoin spot demand, leaving traders focused on whether buying activity improves.