Bitcoin is trading just below a critical resistance zone, with analysts pointing to $116,963 as the most significant supply wall that could determine the next phase of the rally.
At the time of writing, BTC hovers around $116,000, maintaining a strong seven-day gain of more than 5%.
Data from Glassnode highlights that a large cluster of coins was last transacted near $116,963, suggesting heavy selling pressure could emerge once price approaches that level. Market strategist Ali noted that this zone represents the most important supply barrier ahead of Bitcoin, making it a decisive battleground for bulls and bears.
Meanwhile, on-chain data shows an interesting shift in this cycle compared to previous ones. According to CryptoQuant, balances on over-the-counter (OTC) desks – often used by institutions – have been steadily declining. Unlike earlier cycles where OTC balances surged alongside price, this time they are moving in the opposite direction. Analysts argue this could signal increasing scarcity on institutional desks, potentially amplifying upside pressure if demand remains high.
Bitcoin’s technical outlook also supports the bullish narrative. Charts show BTC consolidating after rebounding from $110,000 earlier this month. Momentum indicators, such as the RSI, are trending upward near neutral territory, leaving room for further gains without entering overbought conditions.
Despite this optimism, traders remain cautious. The $116,963 supply wall coincides with a psychological barrier at $120,000, where sellers could once again attempt to take control. Should Bitcoin break through with strong volume, analysts believe the next leg higher could retest the $123,500 region, with a clear path toward new all-time highs if momentum holds.
On the downside, support is seen near $110,000, followed by a stronger floor around $100,000, levels that have acted as a springboard in recent months.
With the Federal Reserve preparing for interest rate cuts and liquidity conditions improving, macroeconomic factors may provide additional fuel for Bitcoin. If institutional inflows remain steady, this cycle may indeed prove “different,” as some analysts suggest, potentially setting the stage for Bitcoin’s next historic rally.
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Source: https://coindoo.com/market/on-chain-data-suggests-bitcoin-rally-could-outpace-previous-cycles/