Bitcoin faces sell walls that have formed resistance points over the years, and current trends show BTC might overpower these walls
On-chain data suggests the Uptober rally may still happen for the world’s leading digital asset, Bitcoin (BTC). Ki Young Ju, founder and CEO of CryptoQuant, shared valuable insight on X using a chart showing the difference in the buy-sell quote volume. The chart compares data from January 2023 and October 2024 with data from 2020 and 2022.
Bitcoin’s Price Breaks Through Resistance
Notably, the analyst’s chart shows the price of BTC has risen above resistant “strong sell walls.” Bitcoin’s price has now climbed into the “strong buy walls” zone.
#Bitcoin buy walls on all exchanges are now strong enough to neutralize sell walls. pic.twitter.com/GOgHBt4MiC
— Ki Young Ju (@ki_young_ju) October 14, 2024
For insight, a buy wall refers to a large volume of buy orders at a specific price, while a sell wall is a large volume of sell orders.
A strong buy wall in the market creates significant demand for Bitcoin at certain price levels, below which the value cannot drop. The same applies to the sell wall, which prevents Bitcoin from breaking a threshold by offering large amounts for sale.
Young Ju’s post highlights that Bitcoin’s buy walls can neutralize sell walls on all exchanges. This significant development has already been reflected in the broader market space. As of this writing, data shows Bitcoin trading up by 4.86% to $65,669.49.
The asset briefly reached $64,600 in earlier trade, with some anticipating it will likely break the $65k resistance level if momentum holds.
Market Implications for a Bullish Uptober
According to data from the last Bitcoin market cycle, sell walls surpassed buy walls around May 2021. That is, there was more pressure to sell than to buy. This likely contributed to the bearish period that Bitcoin’s price experienced during this phase.
With the strong buy walls to neutralize sell walls, buying demand has jumped. These strong buy walls might support Bitcoin’s price for a bullish Uptober. The crypto community will have to wait and see if this market cycle will take BTC to $400,000, as predicted by on-chain analyst Ali Martinez.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
