Bitcoin Charts Bullish Path Toward ATH, But Must Shatter This Major Supply Cluster

Bitcoin's next leg up faces a critical test—a massive wall of sell orders that could make or break its run to new all-time highs.

The Supply Wall: What's Holding It Back

Every rally hits resistance. For Bitcoin, the path to its previous peak is blocked by a concentrated cluster of sell-side pressure. This isn't just minor profit-taking; it's a significant supply overhang where a large volume of coins was previously acquired. The market needs to absorb this inventory before any clean breakout can occur. Think of it as a traffic jam on the highway to ATH—until it clears, momentum stalls.

Bullish Structure Intact Despite Hurdle

Don't mistake the cluster for a trend reversal. The underlying chart structure remains decisively bullish. Higher lows and strengthening support levels paint a picture of accumulation, not distribution. This setup suggests larger players are positioning for the next move, viewing any dip near this supply zone as a buying opportunity rather than an exit signal. The sentiment is shifting from 'if' it breaks out to 'when.'

The Breakout Blueprint

Clearing this zone requires a surge in buying volume that can eat through the sell orders. A decisive, high-conviction candle closing above the cluster would signal that the resistance has been invalidated, potentially triggering a wave of algorithmic and momentum buying. It's the classic financial market dance—liquidity begets liquidity. Once that wall falls, the road to ATH opens up, possibly fueling the kind of FOMO-driven rally that makes traditional finance guys clutch their pearls and double-check their bond yields.

Timing the move is always the tricky part—markets have a habit of taking the stairs up and the elevator down, often when the most leveraged positions get comfortable.

A Fresh All-Time High Beckons For Bitcoin

Bitcoin’s price is gaining sharp upward traction as it retests the $98,000 price mark on Wednesday, a level last seen in November 2025. On-chain data shows that the crypto king is once again edging toward uncharted territory, with market structure pointing to a clear path toward a new all-time high.

However, there is a significant barrier between present levels and price discovery: a dense supply cluster created by investors who have previously made purchases in the same range. This range was highlighted by Glassnode, a leading on-chain data platform, after examining the BTC Long-Term Holder Cost Basis Distribution Heatmap.

Data from the key metric shows a dense cost-basis cluster between the $93,000 and $109,000 price range, which is forming a substantial overhead supply zone. The supply zone serves as a technical and psychological barrier where a large number of holders may be waiting to take profits or quit at breakeven, resulting in concentrated resistance.

At this level, any sustained push higher must first absorb this supply, with a decisive breakout above the range. If bitcoin is able to absorb this overhead supply and push through it decisively, momentum could pick up pace quickly. Glassnode noted that this crucial range is usually expected to reopen the path toward a new all-time high for Bitcoin over the longer term.

According to Glassnode in another post, BTC has ushered in the new year with constructive momentum, printing two higher highs and extending its value toward the $98,000 price level. However, the platform stated that the leg up currently runs directly into a historically supply zone.

BTC Market Is Displaying Deleveraging Signals

Looking at Bitcoin’s current action from an on-chain perspective, the flagship asset is starting to show signs of deleveraging. This deleveraging indicates that excess speculation is being removed from the market after a period of high leverage and aggressive positioning.

Coin Bureau’s report shared on X points to a sharp decline in BTC Open Interest (OI) from $15 billion in October to $10 billion today, as Leveraged traders get flushed out. The drop represents an over 30% decrease within the period. 

Interestingly, these deleveraging phases have often preceded major market bottoms, making this a critical moment for BTC. Nonetheless, should BTC continue to fall, more leverage is expected to still get wiped out.

At the time of writing, the bitcoin price was trading at $96,247, demonstrating a 1.29% increase in the last 24 hours. Data from CoinMarketCap shows that trading volume is down despite the bullish price action, dropping by more than 3% in the past day.