Bitcoin‘s value is currently hitting significant resistance as it nears the on-chain average cost level for traders. Data from CryptoQuant indicates that the price range of $91,000 to $92,000 is a crucial threshold that could impede further price increases. This area, referred to as the “Trader’s Realized Price,” serves as a formidable resistance point, particularly when the market experiences strain.
Can Bull Score Data Predict Bitcoin’s Shift?
CryptoQuant provides crucial insights through its Bull Score Index, which helps determine whether the market is in a bullish or bearish phase. Readings above 60 suggest optimism and a robust buying interest, whereas values below 40 indicate hesitation and market pressure. Presently, the Bull Score is below 60, casting doubt on Bitcoin’s chance for a price uptick.
The low Bull Score continues to create uncertainty among traders. Even with potential price increases, the market structure remains wary. These insights imply that any price movements lack support, the trading volume is inadequate, and the upward trend is built on shaky grounds. The $91,000 to $92,000 range is seen as a technical barrier as well as a psychological benchmark.
Why Is Bitcoin Stuck at the Trader’s Buying Level?
The Trader Realized Price reflects the average cost at which Bitcoin has been traded on-chain. Traditionally, this level has acted as a support during bullish phases but becomes a significant resistance point during bearish markets. Current trends suggest that the market still displays bearish tendencies, finding it challenging to break through this price point.
Historically, the cost level, marked by the pink line on the chart, indicates where Bitcoin has stalled in 2021 and 2022. This suggests that sellers often emerge at this price point, making the $91,000 to $92,000 zone both a resistance and a crucial area for market direction.
- Bitcoin struggles to surpass the critical resistance zone of $91,000 to $92,000.
- The Bull Score remains below the bullish threshold, indicating market skepticism.
- Low trading volume and insufficient support weaken any upward momentum.
- The Trader Realized Price serves as a pivotal psychological barrier for traders.
To gain momentum, Bitcoin will need to breach the $91,000 to $92,000 level decisively. If this threshold is not surpassed, the selling pressure could trigger a pullback in the near term.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-faces-critical-resistance-at-key-levels