Bitcoin Faces Heavy Overhead Supply, Needs to Break $100K Resistance
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Market Structure Analysis: Analysts highlight that Bitcoin's rebound from the low $80,000 region has faced heavy selling pressure from a dense supply zone between $94,000 and $120,000, creating a top-heavy structure that repeatedly caps rallies, resembling early bear market phases seen in past cycles.
- Downside Risk Warning: Bitcoin's downside risks remain elevated as long as it trades below the short-term holder cost basis of $100,589, with approximately 6.7 million bitcoins currently held at a loss, marking the highest level recorded in this cycle, indicating potential for further declines.
- Ethereum Stabilization Signs: In contrast to Bitcoin, Ethereum shows signs of stabilization above the $2,750 support level, with improving momentum indicators, and a breakout above $3,100 could confirm a corrective low and open upside towards the 200-day moving average near $3,570.
- Demand Absorption Challenge: Analysts note that the future market trajectory will depend on whether fresh demand can absorb the overhead supply currently dominating rallies; failure to do so may lead to further declines in Bitcoin's price.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
