Bitcoin (BTC) Is in a Tight Spot. Right Now, It Is Trading at $81,800, Sitting Between Two Major Liquidity Zones

Right now, it is trading at $81,800, sitting between two major liquidity zones that could determine its next move.

Bitcoin (BTC) is in a tight spot right now, trading at $81,800. As on-chain data from IntoTheBlock reveals, there are two major liquidity zones that could decide the next move for BTC.

According to the analysis, the first critical support level lies at $79,270, where a significant amount of coins are concentrated. At this level, around 301,410 BTC are held by 368,550 addresses, indicating strong support. A slip through this zone could open the door for further decline to the next support, which is at $69,445.

At $69,445, another large liquidity zone begins, spanning to $71,902. In this zone, 313,160 BTC are sitting in 752,840 addresses. This level is crucial as it could determine whether BTC has enough strength to stay afloat or will face further downward pressure.

However, if the bulls manage to keep BTC above the first support at $79,270, the next resistance zone comes into play. Between $84,296 and $86,753, about 287,200 BTC are held by 556,030 addresses.

This is a significant amount of Bitcoin, and it could provide resistance as traders might take profits at these levels, especially after the recent rapid ascent. Breaking past this level would be no easy feat.

After smashing through the $80,000 zone, Bitcoin encountered another critical resistance level in the $84,000 zone. This zone was formed due to a large liquidity zone, which spanned from $84,296 to $86,753.

Within this zone, 287,200 BTC were held by 556,030 addresses, making it a significant level to watch. As the price approached this zone, it faced selling pressure, which eventually pushed the price back down.

However, the bulls managed to regroup and break through this resistance, setting the stage for a continuation of the uptrend.

As the price moved higher, it encountered another crucial support level in the $79,274-$81,731 zone. At this level, 301,410 BTC were parked in 368,550 addresses.

This level was closely observed by market analysts, who believed that if this support zone slipped, the next critical level would be much lower, spanning from $69,445 to $71,902.

At these lower prices, 313,160 BTC were sitting in 752,840 addresses.

Dropping back to that level would not just be another dip. It would be a psychological setback, a reminder of Bitcoin’s past struggles before breaking new highs.

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Last year, after months of attempts, the cryptocurrency market finally managed to break free from the bear market and began a new bull cycle.

This year, the market has been trying to build a strong foundation above old all-time highs, and a slip toward $69,000 would raise questions about whether Bitcoin’s latest rally is running out of steam.

At this stage, everything comes down to liquidity. If demand weakens, the Bitcoin price could find itself drifting toward these lower support zones.

But if buyers step in and provide enough demand, Bitcoin might get another shot at breaking through resistance and moving higher.

Either way, the next few days and weeks could be decisive in determining where Bitcoin is heading next.