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.
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
- Weaker support levels extend down to $81,800
- Current support appears weaker than the overhead resistance
Technical Analysis
Bitcoin trades near $96,000, showing a 2% decline in 24 hours. The price action suggests consolidation below the resistance wall. Traders should watch for:
- A potential breakthrough above $98,400
- Support holding at $93,400
- Volume patterns at these key levels
Market Outlook
The current market structure suggests caution. Traders should watch for increased volume near resistance levels. A breakthrough could trigger a significant move higher. However, rejection could lead to testing lower support levels.
Tags: Bitcoin, Cryptocurrency Trading, Market Analysis, Technical Analysis, Resistance Levels
Source: NewsBTC