CryptoQuant analysts discussed the recent price surge of Bitcoin, which rose from below $65,000 to over $82,000 in a matter of weeks, before facing resistance. They believe the overall situation remains constructive; however, the cryptocurrency needs to overcome a series of technical and on-chain resistances directly in front of it.
According to CryptoQuant's weekly report, the 365-day moving average of Bitcoin is currently positioned at $81,700, and this is considered the most important level for the asset. Bitcoin briefly surpassed this mark in early September, but soon bears pushed the asset back down. Historically, bull markets are said to 'officially' begin with a close above this moving average. A successful close above $81,700 could confirm a new bullish period and pave the way for further growth. However, if it fails to break above $81,700, there is a possibility of prolonged consolidation or even a deeper decline.
At the moment, the most pressing obstacle is the increasing supply from long position sales, reaching 539,000 Bitcoins between $77,100 and $80,200. Bitcoin will need to absorb this volume of offers before it can confidently attempt to rise again. From a technical standpoint, the first important support is at $70,000, followed by a significant volume accumulating between $62,000 and $65,000, where approximately 476,000 BTC have been accumulated this year. Overall, CryptoQuant analysts maintain a bullish outlook on Bitcoin, but with one critical condition: the asset must soon break above the $81,700 level, then $83,600, and ultimately $88,700 before a recovery can develop into more significant growth.
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