Bitcoin’s upward momentum has hit a significant roadblock. On-chain data reveals a massive supply wall of 1.57 million BTC around the $97,200 level. This resistance could prove challenging for Bitcoin’s next leg up.
Understanding the Supply Wall
Market intelligence platform IntoTheBlock has identified a crucial resistance zone. About 1.6 million addresses hold 1.57 million BTC between $96,400 and $98,400. These holders are currently underwater on their investments.
Underwater investors often seek to break even. They tend to sell when prices return to their entry points. This creates natural resistance levels in the market.
Support Levels to Watch
The strongest support lies between $93,400 and $96,200. However, this support zone contains less supply than the resistance above. Below this range, support remains thin until $81,800.
Market Implications
The current market structure suggests potential consolidation. Bitcoin needs significant buying pressure to overcome the 1.6M BTC wall. Traders should watch these key levels:
- Major Resistance: $96,400 – $98,400
- Primary Support: $93,400 – $96,200
- Secondary Support: $81,800
Technical Outlook
The presence of such a large supply wall often leads to price consolidation. Bitcoin may need to build momentum through accumulation before attempting to break this resistance.
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The current price action at $96,000 represents a critical juncture. The market’s reaction to this resistance zone could determine Bitcoin’s direction in the coming weeks.
Tags: Bitcoin, Market Analysis, Resistance Levels, On-chain Analysis, Trading
Source: NewsBTC