As the cryptocurrency market eyes the coveted $100,000 milestone for Bitcoin, a prominent on-chain analytics firm is flagging a critical hurdle just shy of that target. Glassnode, known for its in-depth market insights derived from blockchain data, recently highlighted a significant point of **Bitcoin resistance** that could test the asset’s upward momentum.
Glassnode’s Insight on Key Bitcoin Resistance
In a recent update shared on social media, Glassnode drew attention to the area around the $97,000 mark as a potential stumbling block for the leading cryptocurrency. Their analysis, based on detailed **on-chain analysis**, points to a concentration of supply at this specific **Bitcoin price** level.
Why is this particular level important? Glassnode’s data indicates that a substantial amount of **BTC price** was acquired by investors when Bitcoin was trading in this range. Specifically, they note approximately 392,000 **BTC price** were accumulated around the $97,000 area. This creates what analysts refer to as a dense concentration of holdings.
Understanding the $97K Bitcoin Price Hurdle
When a large volume of an asset is purchased at a certain price point, that level often becomes a significant psychological and technical area. As the **Bitcoin price** approaches this level again, many investors who bought at or near this price may consider selling.
There are a few reasons for this potential selling pressure:
- Break-Even Selling: Investors who bought around $97,000 may simply want to exit their position without a loss if the price returns to their entry point. This is often called ‘selling at break-even’.
- Taking Profits (for those who bought lower): While the $97k group might sell at break-even, investors who acquired their **BTC price** at much lower levels might see the approach to $100k (and the $97k hurdle) as an opportune time to realize significant gains.
- Supply Concentration: The sheer volume (392,000 BTC) held by investors with a cost basis near $97,000 represents a large potential supply waiting to hit the market. This concentration acts like a wall that the price needs to overcome.
This dynamic creates a notable resistance zone. Resistance levels are price points on a chart where selling pressure is expected to be strong enough to potentially halt or reverse an upward trend.
What On-Chain Analysis Tells Us About BTC Price
Glassnode specializes in **on-chain analysis**, which involves examining publicly available data directly from the Bitcoin blockchain. This differs from traditional market analysis that focuses solely on price charts and trading volumes on exchanges.
On-chain metrics can provide unique insights into investor behavior, network activity, and the underlying economics of the cryptocurrency. Data points like cost basis distribution, active addresses, transaction volumes, and exchange flows offer a deeper look at supply and demand dynamics.
In this case, Glassnode’s analysis of the cost basis distribution reveals the ‘acquisition price’ of different groups of coins. Identifying that a large amount of **BTC price** last moved (was acquired) around the $97,000 level gives analysts a strong indication of where potential selling pressure might originate as the price revisits that zone.
Navigating the Path Past $97K for Bitcoin
For **Bitcoin price** to continue its ascent towards the much-anticipated $100,000 mark, it will need to successfully navigate this identified resistance zone around $97,000. Overcoming such a significant supply concentration typically requires strong buying volume and conviction from market participants.
If Bitcoin can absorb the selling pressure at $97,000 and push through decisively, it could signal strength and potentially clear the path for a run towards six figures. Conversely, failure to break this level could result in a price rejection, leading to a pullback as sellers gain temporary control.
Market participants will be closely watching metrics like trading volume, order book depth around $97,000, and continued on-chain flows to gauge the likelihood of a successful breakout.
Conclusion: The Critical Test for Bitcoin Price
Glassnode’s recent analysis serves as a crucial reminder that while market sentiment may be bullish about reaching $100,000, significant technical and on-chain hurdles remain. The concentration of approximately 392,000 **BTC price** acquired near $97,000 presents a tangible supply barrier.
This $97,000 level is now highlighted as a key **Bitcoin resistance** point. How the market reacts when the **BTC price** reaches this zone will be a critical test, offering valuable insight into the immediate future trajectory of Bitcoin and its potential to finally claim the $100,000 milestone.
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