Bitcoin Hits Resistance as Analysts Eye Critical $81,700 Level
Bitcoin's recent price surge has hit a wall, according to CryptoQuant. The cryptocurrency rallied from under $65,000 in mid-August to over $82,000 within a few weeks, but its upward momentum has stalled.
The analysts at CryptoQuant believe that the setup remains constructive, but Bitcoin needs to overcome several technical and on-chain resistance levels before it can continue its recovery. The most important level is Bitcoin's 365-day moving average, currently located at $81,700. If Bitcoin closes above this level, it could confirm a new bullish phase and pave the way for another major leg up.
However, if Bitcoin fails to break through this resistance, it could lead to a longer consolidation phase or even a more profound decline. There are also other resistance levels ahead, including the 3x Metcalfe valuation band at $83,600 and the trader-realized-price upper band at $88,700.
The most immediate problem for Bitcoin is its on-chain supply wall, with long-term holders selling as much as 539,000 units between $77,100 and $80,200 throughout the year. To make another convincing attempt north, Bitcoin would need to absorb this supply before it can continue its upward momentum.