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 could create selling pressure as holders attempt to break even.
Technical Analysis and Market Implications
The current market structure shows:
- Strong resistance: $96,400-$98,400 zone
- Key support: $93,400-$96,200 range
- Weak support levels below $93,400 until $81,800
The resistance zone’s strength stems from the high concentration of holders who bought at these levels. Their potential selling behavior could cap upward price movement.
Support Levels Analysis
The primary support zone contains less supply than the resistance block. This suggests weaker buying pressure at current levels. A break below $93,400 could trigger a cascade to lower support levels.
Market Outlook
Bitcoin’s current position at $96,000 represents a critical juncture. The market faces two possible scenarios:
- A breakthrough above the 1.6M BTC wall could trigger a strong rally
- Rejection at resistance might lead to a retest of lower support levels
Traders should watch for increased volume and momentum indicators for confirmation of either scenario.
Tags: Bitcoin, Technical Analysis, Market Analysis, Cryptocurrency, Trading
Source: NewsBTC