Key Takeaways:
- Major resistance identified between $95,400 and $98,200
- 2.29 million addresses holding 1.66 million BTC at these levels
- Current price at $90,700 after recent volatility
Market intelligence platform IntoTheBlock has unveiled a critical resistance zone that could significantly impact Bitcoin’s next move. According to their latest on-chain analysis, a massive supply wall looms between $95,400 and $98,200, potentially setting up a decisive battle between bulls and bears.
Understanding the Supply Wall
The identified resistance range is particularly significant due to the concentration of Bitcoin holdings within it. Data shows that approximately 2.29 million addresses purchased 1.66 million BTC within this price zone. With Bitcoin currently trading at $90,700, these holders are underwater on their investments, creating a potentially challenging scenario for upward price movement.
As noted in recent market volatility that saw Bitcoin plunge below $83K, price reactions near significant holder levels can trigger substantial market movements.
Market Implications
The current market structure presents a fascinating dynamic:
- Break-even Psychology: Holders who bought in the $95-98K range may be eager to exit at break-even
- Volume Analysis: The 1.66 million BTC represents a significant potential selling pressure
- Recent Volatility: Bitcoin’s movement between $80,000 and $90,000 demonstrates market sensitivity
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Technical Outlook
IntoTheBlock’s analysis suggests that fearful sentiment among underwater holders could trigger significant selling pressure as prices approach their break-even levels. The market’s ability to absorb this potential selling pressure will be crucial for Bitcoin’s next directional move.
Expert Perspectives
Market analysts emphasize the importance of monitoring holder behavior at these critical levels. The concentration of addresses at the $95-98K range could act as a psychological barrier, potentially requiring substantial buying pressure to overcome.
Looking Ahead
While the identified supply wall presents a significant challenge, Bitcoin’s recent resilience suggests strong underlying demand. The market’s response to this resistance zone could determine the cryptocurrency’s trajectory in the coming weeks.
Source: NewsBTC