Bitcoin Stuck in Overhead Supply Zone Ahead of Fed Rate Hike Decision

Bitcoin is currently trading around $77,300, but a significant concentration of selling pressure between $77,100 and $80,200 has made it challenging for the cryptocurrency to break out above $80,000.

CryptoQuant data shows that long-term holders have sold approximately 539,000 BTC in this range, creating a substantial overhead supply zone. Above this range, Bitcoin's 365-day moving average near $81,700 is emerging as a key technical test.

The futures open interest remains elevated at around $51.9 billion, while approximately $183 million of Bitcoin positions were liquidated over the latest 24-hour period.

A break above $81,700-$83,600 could reopen the path towards the mid-$80,000s, but failure to escape this supply zone would leave Bitcoin vulnerable to another test of lower support. The 200-day moving average near $70,000 is a key longer-term level being watched if the correction deepens.