Bitcoin's Price Hovers Near $100,000, Facing Supply Resistance

Bitcoin's price has shown a strong recovery over the past two weeks, with the bull run seemingly regaining momentum. The premier cryptocurrency is on track to surpass the significant $100,000 level, a milestone that was once considered unlikely. However, the journey to a six-figure valuation is fraught with challenges, as the latest on-chain data indicates that Bitcoin's price is currently trapped within a critical range that could dictate its movement in the coming weeks.

Prominent crypto analyst Checkmate recently shared insights on the X platform, highlighting that Bitcoin's price is navigating through the $93,000 and $100,000 range. This observation is based on a supply distribution heatmap, which illustrates the concentration of coins acquired at various price points. The deep red shades on the heatmap signify high volumes of coin activity, indicating that large clusters of investors have their cost bases in this price range. These cost base clusters act as both psychological and technical resistance zones, as investors are likely to sell when prices return to their purchase levels.

According to the distribution heatmap, there is a substantial supply barrier for Bitcoin in the $93,000 – $100,000 region. This suggests that the premier cryptocurrency faces significant selling pressure from investors looking to break even after prolonged periods in the red. Beyond the $100,000 threshold, the Bitcoin supply significantly declines, indicating lower historical buying activity and relatively less significant resistance. A breach above the $100,000 mark could signal the start of a strong upward rally for Bitcoin, as Checkmate noted that "blue skies" lie beyond this psychological price level. Conversely, failure to break out of the $93,000 – $100,000 region could result in another extended consolidation period.

As of the latest data, the price of Bitcoin stands at around $96,680, with no significant movement in the past 24 hours. On a weekly basis, the flagship cryptocurrency has seen a more than 2% increase. The price of BTC briefly touched the $97,000 level on the daily timeframe, reflecting the ongoing volatility and potential for further gains. The current price action suggests that Bitcoin is poised for a breakout, but the dense supply cluster between $93,000 and $100,000 presents a formidable challenge. Investors and analysts will be closely monitoring the situation to gauge the next move in the cryptocurrency market.