Bitcoin Rally At Risk: This Critical Resistance Could End BTC’s Bullish Run

As Bitcoin (BTC) attempts to hold $80,000 as support, some market analysts have warned about a crucial resistance area that could make or break the flagship crypto’s bullish rally.

Bitcoin Bull Rally Meets Key Resistance

In a Tuesday analysis, market watcher Ali Martinez highlighted a “crucial resistance barrier that has the potential to put an end to the recent Bitcoin bull rally” that has sent the price to its highest levels in months.

He explained that BTC has been attempting to clear the 200-day Simple Moving Average (SMA), near $82,500, for three consecutive days. A breakout above this level could trigger a rally toward the $94,000 area, Martinez affirmed, while a rejection could send the price to retest the 50-day SMA around $75,000.

However, the failure to reclaim this level may suggest that the market “is struggling to find the follow-through volume needed for a breakout.” The analyst pointed out that a recent shift in miners’ behavior could reinforce the resistance area above.

BTC faces resistance around the 200-day SMA. Source: Ali Charts on X

Over the past month, Bitcoin miners have been steadily taking profits, offloading over 3,400 BTC they’ve held since the $72,000 range to cover operational costs or lock in gains at the recent highs. “This added supply could strengthen the overhead resistance,” he affirmed.

Meanwhile, retail and futures traders are “aggressively increasing their risk appetite,” with the Estimated Leverage Ratio currently at a yearly peak, indicating an overextended market reliant on borrowed funds.

Most of this leverage is skewed toward long positions, creating liquidation walls at $75,000, $73,000, and $70,000, Martinez added, warning that if Bitcoin can’t flip the $82,500 resistance into support, “the market may look to flush this leverage by testing those lower levels.”

BTC Poised For Another Correction?

Analyst Rekt Capital a macro perspective, suggesting Bitcoin may fail to reclaim the crucial resistance and fall to new lows in the coming months. He highlighted BTC’s breakdown from its macro triangle base around $82,500, which has sent the price retest the 50-month EMA.