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In the cryptocurrency market, Bitcoin, which has recently shown bullish signals, is beginning to face significant technical resistance levels. Crypto analyst Murphy Chen stated that Bitcoin could encounter strong selling pressure in the short term at the $74,000 and $78,880 levels.
In an analysis shared by Chen on the social media platform X, it was stated that Bitcoin’s recent rise was largely due to a decrease in supply on exchanges and increased demand in the spot market. However, according to the analyst, this rise may become more difficult as it approaches significant technical resistance zones.
According to Chen, the first critical level is $74,000. This price is considered a strong resistance level because it falls within the Market Value to Realized Value (MVRV) range, a frequently used indicator in the crypto market. The analyst emphasized that overcoming this level could be more difficult in an environment where a bearish trend has begun in the market.
The second major resistance point is indicated as $78,880. This level is said to correspond to the average cost price of long-term investors. According to the analysis, long-term investors hold approximately 2.42 million BTC, and the current demand level seems unlikely to absorb this size of supply in a single upward surge.
Chen also pointed out that a significant amount of “Long Gamma” positions have accumulated in the options market at the $74,000 level. This situation could make price movements more volatile in the short term.
The analyst predicts that the peak of Bitcoin’s current recovery will most likely occur between $74,000 and $79,000. The subsequent price direction is considered to depend on whether this resistance zone can be strongly broken.
*This is not investment advice.
coindesk.com
decrypt.co