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 are currently underwater on their investments.
This concentration of holdings creates a natural selling pressure. Investors often try to exit their positions when prices return to their entry points. The size of this supply wall makes it particularly significant.
Support Levels and Market Structure
Below the current price, Bitcoin has established support between $93,400 and $96,200. However, this support zone contains less supply than the resistance above. This suggests the support might be weaker than the overhead resistance.
If Bitcoin breaks below this support, the next significant levels don’t appear until $81,800. The path downward shows relatively thin support walls.
Market Implications
The current market structure presents several key implications:
- Short-term resistance could limit immediate upside potential
- Breaking above $98,400 might trigger a significant rally
- Support at $93,400 needs to hold to maintain bullish momentum
- A breakdown could lead to rapid price decline toward $81,800
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Technical Outlook
Bitcoin currently trades around $96,000, showing a 2% decline in 24 hours. The price action suggests consolidation below the resistance zone. Traders should watch for:
- Volume patterns near the resistance zone
- Formation of price patterns at current levels
- Behavior of long-term holders in this range
The next few days could determine whether Bitcoin can overcome this substantial supply wall or if a deeper correction is due.
Tags: Bitcoin, Market Analysis, Resistance Levels, Trading, Cryptocurrency
Source: NewsBTC