In the cryptocurrency market, Bitcoin has recently shown bullish signals but is beginning to face significant technical resistance levels. Crypto analyst Mu Fei Chen stated that Bitcoin may encounter strong selling pressure in the short term at the levels of $74,000 and $78,880.
In an analysis shared on social media platform X, Chen pointed out that Bitcoin's recent rise is primarily due to reduced exchange supply and increased demand in the spot market. However, the analyst warned that as Bitcoin approaches important technical resistance areas, the difficulty of further increases may intensify.
According to Chen's analysis, the first key resistance level is set at $74,000. This price is seen as a strong resistance level as it falls within the market value to realized value (MVRV) range, a commonly used metric in the crypto market. The analyst emphasized that breaking through this level will be more challenging in an environment where bearish trends have begun to emerge.
The second major resistance level is marked at $78,880. This level corresponds to the average cost price of long-term investors. The analysis noted that long-term investors hold approximately 2.42 million BTC, and the current demand levels seem unlikely to absorb such a scale of supply in a single rise.
Chen also pointed out that at the $74,000 level, a large number of “long gamma” positions have accumulated in the options market. This situation could lead to more intense price fluctuations in the short term.
The analyst predicts that the peak of Bitcoin's current rebound is most likely to occur between $74,000 and $79,000. The subsequent price movement is believed to depend on whether this resistance area can be strongly broken through.