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Bitcoin’s clawed back over 12% after last week’s $80,000 freefall, offering a welcome breather after what felt like a market-wide panic attack. But don’t uncork the champagne just yet. Beneath the surface, a nervous energy still crackles, fueled by what analysts are calling Bitcoin’s biggest short-term holder exodus ever. Is this a dead cat bounce or the start of a genuine recovery? The jury’s still out.
The market just delivered a brutal punch, a knockout blow of realized losses so swift and savage it shattered records. Now, investors are left reeling, wondering if this fragile “recovery” is a true resurgence or just a deceptive head fake before the next plunge.
Bitcoin’s rally hits a wall. Glassnode data reveals a tough road ahead, with analysts pinpointing major buyer-created supply clusters as the key obstacle. Bitcoin needs to smash through these resistance zones to reignite its bullish fire.
Imagine walls of sellers poised above the current Bitcoin price. These aren’t just casual traders; they’re battle-scarred investors who bought in higher. Now, as BTC claws its way back, they see a chance to escape, to finally break even. This creates a powerful gravitational pull downwards, a “breakeven barrier” that could unleash a torrent of sell orders and slam the brakes on any sustained rally.
Bitcoin Faces Critical Supply Barriers
Bitcoin’s rally faces critical supply walls! Glassnode warns the climb to sustained recovery hinges on smashing through two major price barriers. Prepare for a showdown at $93,000-$96,000, but the real battleground lies ahead: a massive supply zone stretching from $100,000 to $108,000. Will Bitcoin conquer these peaks, or will resistance trigger a retreat?
Imagine invisible battle lines etched onto the market, forged during a surge of bullish fervor. These aren’t just price levels; they’re pressure points where legions of investors now teeter precariously, either nursing losses or desperately clinging to breakeven. Think of them as underwater citadels, defended by those who entered the fray early, now hoping for a rescue.
Glassnode suggests these price zones often become formidable resistance barriers. Imagine recent buyers, scarred by the last price plunge, eagerly awaiting a chance to escape at breakeven. This creates a surge of sell orders, like a dam suddenly erected in the face of a rushing recovery, momentarily halting its progress.
Bitcoin teeters on a knife’s edge. Will it shatter resistance and surge toward new heights, or succumb to relentless selling pressure? The coming days are pivotal. All eyes are on BTC as it battles these key levels. A decisive breakout ignites a fresh rally. A failure confirms the bear’s grip remains tight. The market holds its breath.
Testing Support After a Sharp Multi-Week Selloff
Bitcoin teetered on the brink, but a phoenix is stirring in the ashes. Last week’s gut-wrenching plunge to the $80K abyss looked like the final act, but the market’s pulse is quickening. Now, hovering around $91,500, Bitcoin isn’t just surviving; it’s showing fight. That long, defiant wick on the weekly chart? That’s not just a shadow; it’s the footprint of bulls who refused to let Bitcoin die. Demand is surging, swallowing the fear-fueled sell-off whole. The market is attempting to stabilize after one of the most aggressive drawdowns of the cycle.
But hold on, that upward bounce might be a head fake. Beneath the surface, the ice is cracking. Bitcoin’s price is still struggling to climb back above its 50-week moving average – a line in the sand that reliably propped it up during the bull run. When that support crumbled earlier this month, it was a major warning sign. Now, Bitcoin’s fighting to reclaim that ground, but flipping resistance back into support is a brutal uphill battle.
Bitcoin’s last stand? The 100-week moving average, hovering around $80K, has been a fortress against the bears, staunching the bleeding and becoming ground zero for bullish defenders. This line in the sand is crucial. Lose it, and the entire market risks plunging into a full-blown macro reversal. Hold it, and the bulls live to fight another day.
Trading volume is screaming “capitulation!” We’re at a make-or-break moment. A solid surge past $92K–$94K ignites the comeback rally. But a failure here? Brace for a potential plunge back to $80K support. The market’s holding its breath.
Featured image from ChatGPT, chart from TradingView.com
Thanks for reading Bitcoin Must Break Key Supply Clusters To Regain ATH Momentum – Watch These Levels
