Bitcoin Faces Key Short-Term Resistance at $106,200 and Support at $97,500 Amid Increased Selling Pressure
Bitcoin (BTC) is encountering notable selling pressure, particularly from long-term holders, leading to a test of crucial support zones around $97,500 and potential resistance at $106,200. Recent on-chain analysis from CryptoQuant highlights that the average entry prices for short-term BTC holders range from $87,300 to $106,200, making these levels significant for market behavior. When BTC approaches these breakeven price points, short-term holders are more likely to sell, resulting in heightened resistance near $106,200. Conversely, the $97,500 zone is being eyed by over-the-counter buyers as a strong potential support and possible accumulation region. Traders are urged to monitor these price levels closely, as volatility is likely to increase around them. While technical analysis notes that June usually brings positive median returns for Bitcoin, the market remains cautiously optimistic, especially if favorable macroeconomic conditions prevail. Effective risk management is recommended as elevated selling by holders could trigger further fluctuations.
Neutral
BTC is currently undergoing significant volatility as both long-term and short-term holder actions define key price zones. Resistance at $106,200 and support at $97,500 are both technically and psychologically significant. The increased selling by long-term holders creates downside risks, yet substantial support levels and historical trends of positive June returns provide a degree of optimism. Market participants are likely to see price swings and shifting sentiment near these levels, but there is not enough evidence for a distinctly bullish or bearish outlook at this stage. The market remains in a wait-and-see mode, with trader behavior around these price points expected to determine the next move.