Bitcoin (BTC) is approaching a crucial price range where significant resistance levels could influence its next move. With a current price of $95,063.69, data suggests that BTC faces considerable challenges between $95,090 and $99,800, a zone where 2.40 million wallets acquired over 2.28 million BTC.
#Bitcoin faces stiff resistance between $95,090 and $99,800, where 2.40 million wallets bought over 2.28 million $BTC. pic.twitter.com/gG50uvN8OO
— Ali (@ali_charts) December 29, 2024
According to Crypto Analyst Ali Martinez, The latest on-chain data from IntoTheBlock highlights the distribution of Bitcoin holders by price range. As Bitcoin hovers near $95,000, traders and investors are closely monitoring this level, which represents a substantial concentration of wallets holding significant BTC amounts.
At this price range, approximately 1.04 million wallet addresses bought BTC, contributing to a total volume of 11 million coins. This level has become a psychological and technical barrier for BTC, where profit-taking and selling pressure may outweigh buying demand.
The “In/Out of the Money Around Price” (IOMAP) metric provides a detailed breakdown of Bitcoin holders’ positions based on historical buying activity. Below $95,090, BTC has a support base consisting of over 3.31k BTC, representing addresses that purchased between $92,202 and $94,978. This support could help sustain Bitcoin’s current trajectory if prices face downward pressure.
However, resistance in the $95,090-$99,800 range is daunting. With 2.28 million BTC held by a substantial number of wallets, traders may face difficulties pushing BTC beyond this level in the short term. Additionally, the next significant resistance cluster lies above $100,000, amplifying the challenges in breaking out further.
Bullish Scenarios, On-Chain Insights, and Market Implications
From a bullish perspective, breaking through the $99,800 level would signify strong buying momentum, potentially triggering a rally toward psychological levels like $105,000. On the flip side, failure to overcome this resistance may lead to a correction toward the $92,000-$94,000 support zone.
Investor sentiment remains mixed, with macroeconomic factors and regulatory developments continuing to influence the market. BTC holders with unrealized gains at the current level may opt to sell, adding pressure to Bitcoin’s price growth.The IOMAP data reveals that 78% of all wallets holding BTC are currently “Out of the Money,” meaning these addresses are bought at prices higher than Bitcoin’s current value. Meanwhile, 21.91% of wallets are “In the Money,” reflecting a healthy percentage of addresses in profit. This balance highlights Bitcoin’s precarious position as it approaches a critical resistance zone.
Trading volumes also play a crucial role, with 761.27k BTC held by “In the Money” wallets accounting for $72.37 billion. In contrast, 2.71 million BTC held by “Out of the Money” wallets represents a value of $257.66 billion, underlining the potential selling pressure near resistance zones.
The outcome of Bitcoin’s attempt to breach the $95,090-$99,800 resistance zone could set the tone for the broader cryptocurrency market. Altcoins, which often follow Bitcoin’s lead, are also likely to react to Bitcoin’s movement. A decisive breakout or rejection could influence trading sentiment across the board.
As traders watch these levels closely, the market remains cautious. External factors such as Federal Reserve policies, global economic conditions, and developments in the crypto regulatory landscape could further impact Bitcoin’s trajectory.
Bitcoin’s current price movement near $95,000 highlights a critical battle between bulls and bears. While the support at $92,202-$94,978 provides a safety net, the massive resistance at $95,090-$99,800 represents a formidable challenge. Investors and analysts alike are waiting to see whether Bitcoin can muster the momentum needed to break through this zone or face another period of consolidation. With over 2.28 million BTC bought in the resistance range, the coming days could define Bitcoin’s path toward its next major milestone.
