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.
Market Implications
The large concentration of underwater positions creates selling pressure. Holders often try to exit their positions when prices return to their entry points. This behavior can create strong resistance.
Current support levels show interesting patterns:
- Primary support zone: $93,400 – $96,200
- Secondary support levels are thin until $81,800
- Current trading price: Around $96,000
Technical Analysis
The price action suggests a consolidation phase. Bitcoin needs significant buying pressure to break through the 1.6M BTC wall. The weaker support levels below current prices could lead to increased volatility if the primary support breaks.
Market Outlook
The current market structure presents two likely scenarios:
- Breakthrough Scenario: Strong buying pressure could push through resistance
- Rejection Scenario: Price could retreat to test lower support levels
Traders should watch for volume patterns near the resistance zone. High volume breakouts could signal stronger moves.
Tags: Bitcoin, Market Analysis, Resistance Levels, Technical Analysis, Crypto Trading
Source: NewsBTC