Bitcoin Unable To Break Upward As 1.6 Million BTC Resistance Wall Blocks Path
Data on the chain shows that there is a huge wall of Bitcoin supply, which could hinder BTC’s progress beyond the mark.
Bitcoin has obvious resistance at the price level
In the new postal On X, market intelligence platform Intotheblock discusses BTC’s support and resistance levels now from an on-chain perspective. exist Chain Analysisthe potential of any price level to act as support or resistance lies in the supply volume that was last transferred or purchased. Below is a chart shared by the analysis company showing the supply distribution of cryptocurrencies at the price level near the current spot bitcoin value.
In the figure, the size of the point is related to the amount of BTC purchased by the investor within the corresponding price range. It seems that the $98,400 range of $96,400 to $98,400 currently relate to it, meaning these levels have a cost basis for a large number of holders.
More specifically, about 1.6 million addresses last obtained a total of 1.57 million BTC in that range. Since Bitcoin is currently trading at these levels, all these investors will be Underwater.
Loss holders may be desperate to recover their investments, so they may be sold once the price of cryptocurrencies rises to their cost base.
Naturally, this sale is not related to the asset when only a few investors are involved, but when the price retests the range, holding the acquisition level range may result in a large enough reaction to affect the value of the reaction of the asset.
The range of $96,400 to $98,400 is obviously large, so it is possible that Bitcoin is the reason Cannot Find any bullish breaks in the past week.
Just as supply blocks above the spot price can ultimately act as a source of resistance for the asset, the following assets can also be support points. This happens because investors who have once made profits may believe that prices will rise again in the near future, so they can use the “DIP” to decide to double their bets.
Currently, $93,400 to $96,200 is the strongest support wall BTC has in the vicinity. However, it contains a supply of less than the above resistor block, which means its effect should be weaker.
If the support range is lost, only thin walls wait for Bitcoin up to $81,800. Now, it remains to be seen whether Bitcoin can surpass resistance or find itself retesting one of these weaker support levels.
BTC price
At the time of writing, Bitcoin has floated about $96,000 in the past 24 hours, down about 2%.
