Bitcoin's Price Rally Hits Resistance: What's Next for BTC?
Bitcoin's price surge from mid-August has hit a roadblock. The cryptocurrency had risen from under $65,000 to over $82,000 in just a few weeks, but it's now struggling to break through key resistance levels.
CryptoQuant analysts believe the setup remains constructive for Bitcoin, but the asset needs to overcome several technical and on-chain hurdles before it can continue its upward momentum. The most important level is Bitcoin's 365-day moving average, currently sitting at $81,700. If BTC closes above this level, it could confirm a new bullish phase and pave the way for another significant price increase.
However, if the asset fails to break through this resistance, it may lead to a longer consolidation period or even a more substantial decline. There are also other obstacles ahead, including the 3x Metcalfe valuation band at $83,600, which previously halted Bitcoin's progress in May, and the trader-realized-price upper band at $88,700.
The analysts at CryptoQuant also point out that there is a significant amount of on-chain supply between $77,100 and $80,200, with 539,000 BTC held by long-term holders. This 'supply wall' needs to be absorbed before Bitcoin can make another convincing attempt north. On the downside, support levels are in place at $70,000 (200-day MA) and between $62,000 and $65,000, where approximately 476,000 BTC were accumulated this year.