Bitcoin News Today: Bitcoin faces major resistance at $105K UTXO wall as on-chain data signals potential price rejection

Bitcoin faces growing scrutiny as on-chain data reveals a significant UTXO wall forming around the $105,644 price level, raising questions about the likelihood of a major price rejection. The UTXO price histogram highlights a sharp concentration of unspent transaction outputs (UTXOs) in the $105,664 to $149,156 range, indicating a large number of Bitcoins were last moved near this price zone [1]. Analysts suggest this cluster may act as a major resistance level due to its psychological and technical significance, particularly as many investors may seek to exit positions for profit or to break even as prices approach this area [1].

Short-term holders—those holding Bitcoin for between one and three months—are also showing signs of potential selling pressure. According to on-chain data, their average cost basis has risen but remains below the current spot price, which stands at $113,958.69 [1]. This discrepancy suggests that short-term investors are sitting on unrealized gains. Analysts caution that if prices dip below their average purchase level, it could trigger a wave of panic selling, further exacerbating downward pressure [1].

Meanwhile, the funding rate chart for Bitcoin provides additional insight into market dynamics. At present, the funding rate is approximately 0.01%, with green areas indicating that long positions are paying shorts, reflecting a mildly bullish sentiment [1]. However, analysts note that historically, funding rates tend to spike near key resistance levels before experiencing temporary price corrections [1]. A shift to negative funding rates while prices remain elevated could signal weakening demand and potential exhaustion in leveraged buying [1].

Collectively, these indicators paint a complex picture of a market at a crossroads. While Bitcoin continues to trade near all-time highs, the concentration of UTXOs and the behavior of short-term investors suggest that significant resistance is forming near $105K. If the price were to retreat to this level, it could trigger a major correction, particularly if sell pressure from profit-taking or break-even selling intensifies. However, the funding rate’s current positive trend indicates that market sentiment remains cautiously optimistic [1].

The evolving interplay of on-chain metrics and price movements will be critical to monitoring Bitcoin’s next move. Investors and traders are advised to closely watch these signals, as they may provide early warnings of potential volatility or reversal points in the coming weeks.

Source: [1] UTXO Wall at $105K: Will Bitcoin Face a Major Price Rejection? (https://coinmarketcap.com/community/articles/689340333682913b7730ad36/)