Bitcoin (BTC) is currently locked in a precarious trading range, battling for stability around the crucial <b>$97,000</b> level. On-chain analysis reveals a complex conflict: while key metrics point toward an emerging <b>seller exhaustion</b> near this psychological barrier, a dense cluster of overhead supply is simultaneously capping any meaningful upside. This dynamic suggests the market is in a delicate phase of recalibration, with the $97K–$111.9K corridor defining the short-term landscape.
<h3>Seller Exhaustion Emerges Near $97,000</h3>
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The recent price drawdown, which saw <a href="https://www.cryptoknowmics.com/news/bitcoin-enters-mid-cycle-pullback-as-long-term-holders-take-profit/" target="_blank" rel="noopener">Bitcoin</a> approach the $97,000 mark, has triggered significant activity from <b>Short-Term Holders (STHs)</b>—investors who bought in the last few months. Data from the <b>STH Realized Profit-Loss Ratio</b> indicates that as the price tested the $98,000 zone, over 80% of the realized value came from coins sold at a loss. This high intensity of capitulation signals that the most nervous and "top-heavy" buyers are exiting the market.

This intense loss realization, coupled with a notable buildup of realized supply (accumulation) in the sub-$100K range, suggests that savvy buyers are actively absorbing the sell-off. This combination of <b>seller exhaustion</b> and steady accumulation is forming a solid foundation for a potential short-term bounce.
<h3>Overhead Supply Limits Upside Potential</h3>
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Despite the signs of selling exhaustion, a sustained recovery is being aggressively hindered by a dense supply cluster between <b>$106,000 and $118,000</b>. This area represents the cost basis for a large cohort of short-term buyers who entered the market during previous peaks and are now looking to exit their positions near break-even.

As Bitcoin attempts to rally, this overhang of latent supply acts as a natural <b>resistance zone</b>, causing rallies to stall and preventing a decisive shift back to a clear bullish trend. For Bitcoin to reclaim a sustainable recovery path, market inflows must demonstrate renewed conviction strong enough to fully absorb this wave of distribution. Until then, the market is expected to continue its mild bearish trend, with the $100,000 level serving as the key psychological defense line.

Bitcoin’s $97K Battle: On-Chain Data Signals Conflict Between Exhaustion and Resistance

On-chain data shows seller exhaustion near Bitcoin's $97K support, but strong overhead resistance caps the rebound, creating a tough battle.

Bitcoin’s $97K Battle: On-Chain Data Signals Conflict Between Exhaustion and Resistance

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