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 move.
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 strength between $93,400 and $96,200. However, this support appears weaker than the overhead resistance. Below these levels, Bitcoin shows limited support until $81,800.
Technical Analysis
The price structure suggests a critical juncture for Bitcoin:
- Strong resistance: $96,400 – $98,400
- Primary support: $93,400 – $96,200
- Secondary support: Limited until $81,800
- Current price: Around $96,000
Trading Implications
Traders should watch these key levels carefully. A break above $98,400 could trigger significant momentum. However, rejection at this level might lead to testing lower support zones.
💡 Trading Opportunity Alert
Trade Bitcoin with up to 100x leverage on DeFX. Fund your account instantly from Solana, Arbitrum, or Berachain.
The market structure suggests careful position sizing and clear stop-loss levels. Traders might consider waiting for a clear break of resistance before taking new long positions.
Tags: Bitcoin, Technical Analysis, Market Resistance, Crypto Trading, On-chain Analysis
Source: NewsBTC