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On-chain analytics company CryptoQuant stated that Bitcoin maintains its bullish outlook, but a break above the $81,700 resistance level is necessary to confirm a new bull market. Julio Moreno, the company’s head of research, noted that after Bitcoin’s 24% rise in two weeks, the movement has stalled, with the price trading between $76,000 and $82,000.
According to Moreno, the first significant resistance zone above the current price is located in the $77,100-$80,200 range. It is noted that long-term investors have sold up to 539,000 $BTC in this region over the past 30 days, and this area is considered the strongest on-chain supply resistance above the current price.
Following this region, the critical technical level for Bitcoin is the 365-day moving average, around $81,700. Moreno noted that in past cycles, Bitcoin bull markets officially began when the price closed above this average. A clear break above this level could confirm a new bull market, while a failure could cause the price to trade sideways for a while longer.
According to CryptoQuant’s 3x Metcalfe band, the next major resistance is at $83,600. Above this, traders are watching the upper band of the current price pattern, $88,700, for potential profit-taking.
On the other hand, the $70,000 level stands out as a support in downward movements. It is stated that long-term investors have purchased approximately 476,000 $BTC in the $62,000-$65,000 region. Moreno said that the overall outlook remains bullish, but Bitcoin needs to overcome the current supply pressure for a new upward wave.
*This is not investment advice.
Source: cryptonews.net