Recent analysis from CryptoPotato reveals that Bitcoin’s path to $90K could be hindered by a crucial resistance level at $85K. After bouncing back from the significant $78K support level, Bitcoin is currently testing this substantial resistance.
Should Bitcoin manage to surpass this hurdle, the next objective would likely be the $90K zone. However, the presence of sellers at this level implies that further consolidation is a more plausible scenario in the short-term.
Bitcoin’s recent price trajectory has displayed a modest recovery from the lower boundary of an ascending wedge, aligning with the 0.618 Fibonacci retracement level at $78K. This overlap of support levels increases the chances of buyers safeguarding this zone in the mid-term. But Bitcoin is now facing a significant resistance zone at $85K, matching with the 0.5 Fibonacci retracement level and the 200-day moving average.
On the lower timeframe, Bitcoin’s recent bullish movement has brought it near the upper boundary of the descending wedge at $85K. If Bitcoin maintains its momentum and breaks this resistance successfully, a rally to the $90K mark could likely be on the cards. However, given the present market conditions and the absence of robust buying demand, further consolidation within the wedge is the more probable short-term outcome.
The Realized Cap UTXO Age Bands (%) metric provides valuable on-chain data that shows the distribution percentage of Bitcoin based on the duration they have been held. The latest data illustrates a rapid rise in the percentage of coins held for 3 to 6 months, mirroring the accumulation patterns seen during the prolonged correction in the summer of 2024.
This trend points to a holding sentiment, with investors opting not to sell their Bitcoin despite the current market correction. Historically, this kind of resilience among Bitcoin holders has been instrumental in creating market bottoms and sparking new uptrends. The ongoing accumulation by long-term holders reduces the available supply in circulation, making Bitcoin scarcer. When demand eventually rises, this supply squeeze often leads to price surges, pushing Bitcoin towards new all-time highs.
Given these patterns, the data suggests that Bitcoin’s current market phase is more of a healthy correction rather than the beginning of a prolonged bear market. Many market participants still perceive Bitcoin as a long-term valuable investment, bolstering the potential for a future bullish trend.
