Bitcoin Must Overcome Key Supply Clusters to Regain ATH Momentum – Monitor These Levels

Summary: Bitcoin has rebounded over 12% since a significant drop to near $80,000 last week, yet uncertainty persists in the market. Analysts suggest that Bitcoin needs to surpass key supply clusters to maintain its upward momentum and potentially reach all-time highs again.

Key Takeaways

Bitcoin has increased by over 12% from recent lows, but market sentiment remains cautious.
Analysts indicate Bitcoin must break through key supply clusters between $93,000–$96,000 and $100,000–$108,000 to gain momentum.
The market shows signs of stabilization, but Bitcoin is currently below the 50-week moving average, a critical support level.
A sustained price above $92,000–$94,000 is necessary for a stronger recovery, while a rejection could lead to further testing of the $80,000 support level.

Bitcoin Must Overcome Key Supply Clusters to Regain ATH Momentum – Monitor These Levels

Bitcoin Confronts Key Supply Barriers

According to new insights from Glassnode, Bitcoin is nearing two significant supply clusters that will be crucial in determining whether the recent rebound develops into a long-term recovery. The first cluster lies between $93,000 and $96,000, while the second, which is larger and more important, ranges from $100,000 to $108,000.

These areas were formed through significant buying activity during earlier phases of the cycle and represent prices where many investors might consider selling at breakeven. This creates a potential for significant sell pressure as Bitcoin's price rises.

Bitcoin Cost Basis Distribution Heatmap | Source: Glassnode

Glassnode highlights that these price ranges generally serve as strong resistance points. Recent buyers who have experienced a downturn may be inclined to sell once the price approaches their initial purchase levels. As a result, this can create temporary supply barriers that may impede upward momentum, even during aggressive recoveries.

Whether Bitcoin can surpass these clusters will be critical in determining if it can establish a pathway toward a new all-time high or if it will fall back under selling pressure. The market is currently entering a pivotal phase, with traders keenly observing Bitcoin's movements as it approaches these levels. A decisive breakout could indicate renewed market confidence, while failure to break through could imply that the broader correction is not yet complete.

Testing Support Following an Intense Multi-Week Selloff

Bitcoin's weekly chart indicates an effort to stabilize following one of the cycle's most aggressive declines. After a drastic dip below $80,000 last week, Bitcoin has climbed back to the $91,500 area, showing that buyers are stepping in at this crucial support level. This bounce coincides with a strong weekly candle featuring a long lower shadow, a traditional indicator of demand absorbing selling pressure during downturns.

BTC consolidates around key level | Source: BTCUSDT chart on TradingView

Nonetheless, despite the rebound, the overall structure remains delicate. Bitcoin is trading below the important 50-week moving average, which had previously functioned as a vital support level during the bull market phase. The failure to maintain this support earlier in the month marked a significant technical break, and Bitcoin is now trying to reclaim it from below—a typically challenging transition that can present resistance.

The 100-week moving average in the mid-$80K range has proven fundamental in halting the price's decline, acting as the primary support area where buyers have defended the trend. As long as Bitcoin stays above this zone, the market avoids signaling a deeper macro reversal.

Trading volume remains high, reflecting significant activity associated with capitulation, and the market stands at a critical juncture. A consistent close above the $92,000–$94,000 range would fortify recovery prospects, while repeated rejection could necessitate another test of the $80,000 support level.

Featured image from ChatGPT, chart from TradingView.com