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 critical resistance zone between $96,400 and $98,400. About 1.6 million addresses hold 1.57 million BTC in this range. These holders currently sit underwater on their investments.
Underwater investors often seek to break even when prices return to their entry points. This behavior can create strong selling pressure. The size of this particular supply wall makes it especially significant for Bitcoin’s price action.
Support Levels and Market Structure
Below the current price, Bitcoin’s strongest support lies between $93,400 and $96,200. However, this support zone contains less supply than the resistance above. This imbalance could lead to increased volatility.
The next significant support levels only appear around $81,800. The large gap between these levels might create opportunities for traders, but also increases risk.
Market Implications
The current market structure suggests several potential scenarios:
- A successful break above $98,400 could trigger a strong rally
- Rejection at the resistance wall might lead to a retest of lower supports
- Extended consolidation below the resistance zone is possible
Trading Considerations
Traders should watch for:
- Volume increases near the resistance zone
- Changes in holder behavior around key price levels
- Formation of new support levels during pullbacks
Advertisement
Trade Bitcoin with up to 100x leverage on DeFX. Experience professional-grade trading with advanced order types and deep liquidity.
Current market conditions suggest careful position sizing and risk management. The presence of significant supply walls could increase short-term volatility.
Tags: Bitcoin, Market Analysis, Technical Analysis, Resistance Levels, On-chain Data
Source: NewsBTC