The analyst at CryptoQuant weighed in on BTC\u2019s notable price resurgence, which drove the asset from under $65,000 to over $82,000 within a few weeks, and, more specifically, on the subsequent rejection and what could follow around the corner.<\/p>\n
They believe the overall setup remains constructive, but the cryptocurrency has to overcome a stack of technical and on-chain resistance levels, which are right in front of it.<\/p>\n
The weekly report by CryptoQuant identified Bitcoin\u2019s 365-day moving average, currently located at $81,700, as the asset\u2019s most important level. Recall that BTC briefly exceeded that level at the start of September, but the bears stepped up and quickly rejected<\/a> the move.<\/p>\n Historically, bull markets have \u201cofficially\u201d begun once the cryptocurrency closes above this moving average. A successful close above $81,700 could confirm a new bullish phase and open the door for another major leg up. However, its continuous inability to break through could lead to a longer consolidation phase or even to a more profound decline.<\/p>\n On the downside, bitcoin\u2019s rally won\u2019t be confirmed by simply moving past the $81,700 obstacle, as there are a few others on the way up. At first, CryptoQuant found the 3x Metcalfe valuation band, which sits at $83,600 and stands as the next big resistance. This level halted BTC in May and has previously coincided with important cycle turning points.<\/p>\n If taken down, there\u2019s one more at $88,700, which is the trader realized-price upper band. History shows that selling has intensified once the cryptocurrency approaches this line because active traders begin sitting on increasingly large unrealized profits.<\/p>\n CryptoQuant noted that the most immediate problem is considerably closer as long-term holders sold as much as 539,000 units between $77,100 and $80,200 throughout the year, creating what the analysts described as the heaviest nearby on-chain supply wall.<\/p>\n Bitcoin would need to absorb this supply before making another convincing attempt north, while the downside is better defined. The 200-day MA around $70,000 represents the first major technical support, followed by another substantial on-chain cluster between $62,000 and $65,000, where approximately 476,000 BTC were accumulated this year.<\/p>\n Overall, CQ\u2019s analysts are still bullish on BTC, but under one critical condition: the asset must clear $81,700 soon, then $83,600, and eventually $88,700 before the recovery can develop into a more profound rally.<\/p>\n The post Bitcoin\u2019s 24% Rally Hit a Wall: CryptoQuant Reveals What Comes Next<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The analyst at CryptoQuant weighed in on BTC\u2019s notable price resurgence, which drove the asset from under $65,000 to over $82,000 within a few weeks, and, more specifically, on the subsequent rejection and what could follow around the corner. They believe the overall setup remains constructive, but the cryptocurrency has to overcome a stack of […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-226424","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/226424"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=226424"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/226424\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=226424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=226424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=226424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}539K BTC<\/h2>\n