Bitcoin, can it break through the selling pressure zone of $84k to $88k... The weekly closing price becomes a watershed.

Bitcoin (BTC) has rebounded to the early $80k range, but analysis indicates that the largest “sell wall” on the chart is stacking above that level, suggesting potential divergence in future directions. The explanation states that the average purchase cost of short-term holders is concentrated above the current price, so even if the rebound continues, profit-taking sell orders are likely to appear first.

According to Bitcoin price analyst Sherlockwhale, the core supply zone for Bitcoin is between $84k and $88k. This area overlaps with the breakeven point for sellers and the average cost of investors who bought Bitcoin within the past 155 days, making it a region where the market is likely to face pressure.

After hitting a low earlier this month, Bitcoin rebounded and has climbed back to around $80k on the weekly chart, but has yet to break through the resistance at $84k. The analysis points out that since losing the $84k support level on January 8 this year, approximately 1.2 million BTC have shifted into unrealized losses, with investors who bought at that time still likely remaining in the market.

In particular, the average cost for short-term holders is estimated to be between $86.9k and $88k. When the price approaches this range, investors who are “trapped” may choose to exit near their cost basis, which could act as resistance rather than fueling further upward momentum.

Currently, Bitcoin is trading around $80,430, having briefly risen to $82,000 in the past 24 hours, then pulled back below $81,000. The market believes that while expectations of the CLARITY Act have stimulated a short-term rebound, whether the weekly closing price can break through $84k will be a key dividing line.

From a technical perspective, there are two possible paths. Bitcoin may directly enter the supply zone between $84k and $86k, then be pushed back and test support around $70k; alternatively, even after a correction and subsequent strength, it could face selling pressure again in the $86.9k to $88k region. Ultimately, the success or failure of this rebound depends on how quickly the “sell wall” can be absorbed.

Article summary by TokenPost.ai

🔎 Market Interpretation
Although Bitcoin has rebounded to the early $80k range, the $84k to $88k zone has formed a large sell wall, and whether the rally can continue remains uncertain.
This area overlaps with the investors who bought at previous highs and the average cost of short-term holders, making it prone to a “break-even sell” mentality.
Especially, about 1.2 million BTC are waiting in a loss position; the higher the price, the greater the selling pressure.

💡 Strategy Highlights
Whether Bitcoin can break through $84k in the short term is a critical dividing line. If it fails, it may test support around $70k.
Even if it rebounds, additional resistance is expected in the $86.9k to $88k range, so caution is advised when chasing highs.
If the sell wall cannot be quickly absorbed, the market is more likely to experience range-bound fluctuations or increased downward volatility rather than a sustained rally.

📘 Terminology Explanation
Sell wall: Refers to a large accumulation of sell orders within a specific price range, creating resistance to price increases.
Supply cluster zone: A price area where past trading activity has concentrated, likely to generate selling pressure in the future.
Short-term holders: Investors who bought assets within approximately 155 days.

💡 Frequently Asked Questions (FAQ)

Q. Why is the $84k to $88k range so important?
This zone has a large number of investors who bought at these prices in the past. When the price rises again, they may have a strong willingness to sell near their cost basis. Therefore, it is very likely to become the biggest resistance area during an upward trend.

Q. Why is the average cost of short-term holders important?
Short-term holders are sensitive to price fluctuations. When the price approaches their average purchase cost, selling pressure can increase rapidly. Currently, this zone is estimated to be between $86.9k and $88k, serving as a psychological resistance line in the market.

Q. What is the expected trend if resistance cannot be broken?
If the rally is blocked above $84,000, profit-taking sell orders may cause the price to decline again, with the $70k level potentially becoming a key support to test. Whether this support can hold will be crucial for assessing the stability of the medium-term trend.

TP AI Notice
This article summary is generated based on the TokenPost.ai language model. The main content may be incomplete or differ from actual facts.