Bitcoin Nears $90K Resistance Zone Amid Growing Institutional Ownership
CryptoQuant's latest research indicates that Bitcoin is approaching its next significant resistance zone near $90,000. According to the firm, this area corresponds to a cluster of on-chain supply from investors who bought BTC one to three months ago. This supply cluster is considered a key hurdle for Bitcoin to clear in order to continue its uptrend.
CryptoQuant's CEO Ki Young Ju has stated that institutional ownership can make future cycle tops and bottoms 'shallower,' reducing both upside and downside extremes. The firm notes that the market structure has changed, with growing institutional participation dampening the depth of future cycle extremes.
The key takeaway is that if Bitcoin trades into the $88,000-$90,000 area, there may be higher odds of profit-taking due to the increased selling pressure from investors who have not yet made a profit on their BTC holdings. However, CryptoQuant's framework suggests that this could be a 'natural pause' within an uptrend, rather than a reversal.