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The analyst at CryptoQuant weighed in on BTC’s notable price resurgence, which drove the asset from under $65,000 to over $82,000 within a few weeks, and, more specifically, on the subsequent rejection and what could follow around the corner.<\/p>\n
They believe the overall setup remains constructive, but the cryptocurrency has to overcome a stack of technical and on-chain resistance levels, which are right in front of it.<\/p>\n
The weekly report by CryptoQuant identified Bitcoin’s 365-day moving average, currently located at $81,700, as the asset’s most important level. Recall that BTC briefly exceeded that level at the start of September, but the bears stepped up and quickly rejected<\/a> the move.<\/p>\n Historically, bull markets have “officially” begun once the cryptocurrency closes above this moving average. A successful close above $81,700 could confirm a new bullish phase and open the door for another major leg up. However, its continuous inability to break through could lead to a longer consolidation phase or even to a more profound decline.<\/p>\n On the downside, bitcoin’s rally won’t be confirmed by simply moving past the $81,700 obstacle, as there are a few others on the way up. At first, CryptoQuant found the 3x Metcalfe valuation band, which sits at $83,600 and stands as the next big resistance. This level halted BTC in May and has previously coincided with important cycle turning points.<\/p>\n If taken down, there’s one more at $88,700, which is the trader realized-price upper band. History shows that selling has intensified once the cryptocurrency approaches this line because active traders begin sitting on increasingly large unrealized profits.<\/p>\n CryptoQuant noted that the most immediate problem is considerably closer as long-term holders sold as much as 539,000 units between $77,100 and $80,200 throughout the year, creating what the analysts described as the heaviest nearby on-chain supply wall.<\/p>\n Bitcoin would need to absorb this supply before making another convincing attempt north, while the downside is better defined. The 200-day MA around $70,000 represents the first major technical support, followed by another substantial on-chain cluster between $62,000 and $65,000, where approximately 476,000 BTC were accumulated this year.<\/p>\n Overall, CQ’s analysts are still bullish on BTC, but under one critical condition: the asset must clear $81,700 soon, then $83,600, and eventually $88,700 before the recovery can develop into a more profound rally.<\/p>\n The post Bitcoin\u2019s 24% Rally Hit a Wall: CryptoQuant Reveals What Comes Next<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n539K BTC<\/h2>\n
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