Market intelligence firm IntoTheBlock found a major barrier for Bitcoin (BTC) using on-chain data in their research. The platform recently described how bitcoin market values demonstrate likely purchase and selling spots in a publication.

How often Bitcoin transactions took place at a price makes that price area stronger as support or resistance in on-chain analysis. When BTC returns to purchase points investors show strong market reactions. Investors usually reduce their Bitcoin amount if they purchased at an earlier high price faced losses and add more if they already profit and seek to earn more.

Bitcoin Investors Face Heavy Losses

The price range gains stronger importance when many trading addresses take part in it. In its latest research IntoTheBlock shows that a large number of 2.29 million addresses have bought 1.66 million BTC at prices between $95,400 and $98,200 which serves as substantial resistance. 

All Bitcoin investors who bought at this resistance range remain in a loss-making situation because the token trades below it. Mounting selling pressure develops at this price range when many traders seek to recover their losses and depart their investments. Bitcoin recently soared between $80,000 and $90,000 when its value took sudden sharp drops but then quickly recovered. 

The fast price swings show market instability since traders must handle macroeconomic developments alongside supply and demand changes plus institutional involvement. Market participants plan to sell Bitcoin once its value crosses their purchase prices because many still want to return to zero-loss positions. According to IntoTheBlock sellers want to exit at their average buy price due to negative market feelings.

Bitcoin believers expect it will keep rising because they see brighter days ahead despite possible marketplace barriers. The most recent surge returned Bitcoin close to $95,000 but it dropped back down to $90,700. For Bitcoin to enter a fresh bullish trend analysts predict it must surpass this strong resistance area. 

The next few weeks will decide if Bitcoin can swim higher by having more buyers than people selling at its current price range. Institutional investors and experienced traders alongside Bitcoin owners for long-term investment will help determine how far the market will push BTC in the future. The market will show if BTC can break through its strong resistance area and if it declines due to selling pressure.