Bitcoin’s upward momentum faces a significant challenge as on-chain data reveals a massive supply wall of 1.6 million BTC around the $97,200 level. This resistance could prove crucial for Bitcoin’s next move.
Understanding the Supply Wall
Market intelligence platform IntoTheBlock has identified a substantial concentration of Bitcoin holders in the $96,400-$98,400 range. About 1.6 million addresses hold 1.57 million BTC in this zone. These holders are currently underwater on their investments.
Market Implications
The large supply wall creates selling pressure. Underwater investors often try to exit at break-even. This behavior can trigger significant resistance when prices approach their entry levels.
The current price structure shows:
- Strong resistance: $96,400-$98,400 range
- Key support: $93,400-$96,200 range
- Weak support zones below $81,800
Technical Outlook
Bitcoin trades near $96,000, down 2% in 24 hours. The price action suggests consolidation below the major resistance. A break above $98,400 could trigger a strong rally. However, the substantial supply wall may require significant buying pressure to overcome.
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Market Sentiment Analysis
The current price level represents a critical juncture. Traders should watch for:
- Volume patterns near the resistance zone
- Whale activity in the identified price ranges
- Overall market momentum and sentiment shifts
The next few weeks could determine Bitcoin’s medium-term trajectory. A successful breach of the supply wall might open the path to new highs. Conversely, rejection could lead to a test of lower support levels.
Tags: Bitcoin, Technical Analysis, Market Resistance, Supply Analysis, Crypto Trading
Source: NewsBTC