Bitcoin Faces Major Resistance Wall at $95,000

Bitcoin's next key resistance level has been identified by market intelligence platform IntoTheBlock, based on on-chain data. The analytics firm has revealed that the cryptocurrency faces a significant supply wall between $95,400 and $98,200.

In on-chain analysis, the strength of support or resistance ranges is determined by the amount of supply last purchased or transacted by investors at price levels within those ranges. Strong support or resistance ranges typically have a large number of addresses with their cost basis in that range. When the price retests these levels, investors may be tempted to sell if they were previously at a loss, or buy more if they were in profit, as they believe the acquisition level will pay off in the future.

IntoTheBlock shared a chart illustrating Bitcoin's supply distribution at ranges around the current spot price. The chart shows that a range from $95,400 to $98,200 stands out with a significant number of coins purchased within that range. Around 2.29 million addresses bought a total of 1.66 million tokens at these price levels, meaning all these investors are currently underwater.

Bitcoin has recently experienced a volatile period, dropping below $80,000 and recovering above $90,000 within a few days. This could make underwater holders eager to sell at their cost basis, providing resistance. The question now is whether demand will be sufficient to outpace potential sellers if Bitcoin rallies and retests this range.

Bitcoin's price has since retreated from the $95,000 level, and is currently trading around $90,700. The trend in the coin's price over the last five days shows a slight retrace after the latest price rally.