Bitcoin Will Test ATH Once It Breaks This Strong Supply Zone – Details
Bitcoin is currently trading at $97,600, down significantly from its all-time highs and recovering slightly from the key support level of $92,000. Recent price action highlights continued market volatility as investors grapple with changes in sentiment and technical levels. Despite the rally, Bitcoin currently faces significant challenges in sustaining its upward momentum.
Related reading
Analyst Ali Martinez has shared compelling data showing that Bitcoin has encountered a massive resistance zone between $97,500 and $99,800. This “brick wall” is reinforced by activity from 924,000 wallets that collectively purchased over 1.19 million BTC in this range. Such strong on-chain resistance could hinder BTC’s ability to regain the psychological $100,000 level in the short term.
This key area may determine Bitcoin’s next move. A successful breakout of this area could pave the way for another rally, while a failure could lead to increased selling pressure and a retest of lower support. As the market watches this critical phase unfold, all eyes are on key technical and on-chain signals to gauge whether Bitcoin’s recovery is sustainable or if a more dramatic correction is in store.
Bitcoin strong
Bitcoin has experienced wild price swings over the past few days, with a 15% correction over three days followed by a swift 6% rebound. This rapid move highlights the severe volatility in the market, with Bitcoin reflecting broader uncertainty. Despite the turmoil, analysts are increasingly optimistic about Bitcoin’s prospects as it took just a few hours to recover from yesterday’s heavy selling pressure.
Martinez shared important insights about Xreveals significant resistance areas that Bitcoin must overcome to regain momentum. Martinez said Bitcoin faces a “brick wall” between $97,500 and $99,800.
This range was reinforced by 924,000 wallets that collectively purchased over 1.19 million BTC within these levels. This massive amount of on-chain resistance could act as an obstacle to Bitcoin’s upward trajectory.
Related reading
If Bitcoin can break out of this key resistance zone, it could open the door to new all-time highs. However, failure to break out of this range could lead to increased selling pressure and further consolidation below the $100,000 mark. For now, Bitcoin remains resilient, holding its ground amid market volatility, and many analysts are cautiously optimistic about its potential to rebound again.
technical analysis
Bitcoin is currently trading at $98,200, having made a strong recovery from the $92,000 mark, which has proven to be a significant demand level. This reaction of $92,000 signals strength in Bitcoin price action and suggests bullish momentum may be emerging in the coming weeks.
If BTC manages to break above the key $100,000 level in the coming days, it could trigger a major surge, potentially pushing the price to new all-time highs. The psychological and technical milestone is expected to trigger a wave of buying pressure as investors and traders anticipate the next phase of the rally.
However, there is still uncertainty in the market, and the possibility of Bitcoin entering a sideways consolidation phase cannot be ruled out. In this case, Bitcoin is likely to remain range-bound between its all-time highs and local lows, reflecting periods of accumulation as the market recalibrates after recent volatility.
Related reading: On-chain indicators show Cardano whales are ‘buying the dip’ – details
Currently, the $92,000 mark provides Bitcoin with a solid foundation and all eyes are on the $100,000 level as the next big test. Whether Bitcoin breaks out or consolidates, its current resilience suggests that Bitcoin will still see significant moves in the near term.
Featured image from Dall-E, chart from TradingView
