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 price movement.
Understanding the Supply Wall
Market intelligence platform IntoTheBlock has identified a substantial concentration of Bitcoin holdings between $96,400 and $98,400. About 1.6 million addresses hold 1.57 million BTC in this range. These underwater positions create strong selling pressure.
Technical Analysis and Market Implications
The current market structure shows several key points:
- Primary resistance zone: $96,400 – $98,400
- Strong support level: $93,400 – $96,200
- Weak support zones extend down to $81,800
The resistance wall’s significance stems from investor psychology. Holders who bought at these levels often seek to break even, creating natural selling pressure. This behavior typically leads to price consolidation or potential reversals.
Support Levels and Their Strength
The closest support range contains less supply than the resistance block above. This imbalance suggests that downward moves could face less buying pressure than upward moves face selling pressure. Traders should watch the $93,400 level closely.
Market Outlook
Bitcoin’s current position at $96,000 represents a critical juncture. The presence of this significant resistance wall suggests potential consolidation. Traders should prepare for increased volatility near these levels.
The thin support levels below $93,400 could lead to accelerated downside movement if broken. However, the current market structure suggests a period of consolidation is more likely than a significant breakdown.
Tags: Bitcoin, Technical Analysis, Market Analysis, Cryptocurrency Trading, On-chain Analysis
Source: NewsBTC