Bitcoin’s upside faces resistance as sell orders cluster near $108.6K, despite improving short-term momentum.
Bitcoin (BTC) is showing resilience this week, holding above key support levels despite failing to break through resistance at $109,000. On-chain data signals an improving investor confidence, even as technical resistance levels challenge bullish momentum.
On-Chain Data Signals Strength
According to Glassnode, Bitcoin price dips have remained shallow, with BTC holding above the one-month realized price of $105,100.
All short-term holder cohorts, who bought Bitcoin within the past six months, remain in profit, with realized prices at $105,600, $106,300, $101,200, and $98,100, respectively.
This suggests that recent price pullbacks have not triggered panic selling. Investor sentiment appears steady, and short-term market momentum is improving, even amid broader uncertainty.
$108.6K Sell Wall in Focus
However, while on-chain data shows improving sentiment, market structure still faces resistance.
CoinGlass’s latest Bitcoin orderbook heatmap shows a dense cluster of sell orders at $108,600, forming a strong sell wall that could limit upward movement.
According to CoinGlass data, there is $65.6 million worth of leveraged positions at risk of liquidation around the $108,600 Bitcoin price level. If Bitcoin’s price dips below this point, a significant number of leveraged traders could be forced to close their positions, potentially increasing market volatility.
Whether bulls can absorb this supply remains a key question. The outcome of this standoff at $108,600 is likely to influence Bitcoin’s short-term price direction.
BTC Price Action and Technical Outlook
The Bitcoin price pulled back to $105,250 after two failed attempts to break $109,000 earlier this week, signaling a possible consolidation or a local top.
Technically, Bitcoin is trading between a downtrend line and key moving averages. If support at $104,500 breaks, the next stop could be the psychological level of $100,000.
Conversely, a breakout above the 20-day EMA could trigger a rally toward the downtrend line, and potentially to the all-time high of $111,980.
Why This Matters
With buyers and sellers locked in a key technical battle, the next few sessions will be critical in determining Bitcoin’s short-term trend.
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