Bitcoin price struggles with resistance at $88,000 despite bullish on-chain data
Bitcoin trades near $87,000 as exchange outflows signal long-term confidence.
Bitcoin price has been on a short-term upward trajectory since its March low, trading near $87,000 in the early European session on Wednesday, March 26.
Despite this recovery, it remains in a broader downtrend from its 2025 all-time high of $109,402, with a year-to-date decline of 6.3%.
This recent price movement has been fueled by a significant shift in investor behavior. On-chain data from IntoTheBlock reveals that over the past 24 hours, Bitcoin saw more than $220 million in net outflows from centralized exchanges.
Over the past week, total outflows have exceeded $424 million. This suggests that investors are transferring Bitcoin to cold storage rather than preparing to sell, indicating long-term confidence and reduced immediate selling pressure.
BTC/USD price dynamics (Dec 2024 - March 2025). Source: TradingView
However, Bitcoin now faces a major test at $88,000, where multiple technical resistance levels converge. This area includes the 50-day exponential moving average (EMA), the Fibonacci 0.618 golden ratio, and a bearish trendline. A clear breakout above this level could push Bitcoin into the $90,000 range, signaling further upside potential.
BTC on-chain data signals long-term confidence despite YTD decline
One fundamental concern, however, is the large concentration of unrealized loss positions at higher levels. Around $97,400, approximately 1.44 million BTC are held by investors at a loss. If Bitcoin approaches this level, selling pressure could emerge as these holders seek to exit at break-even, potentially capping further gains.
The general outlook depends on Bitcoin's ability to break above $88,000. A successful move past this resistance could open the door for a retest of $90,000 and beyond. On the contrary, failure to overcome this barrier may lead to renewed selling pressure, reinforcing the broader downtrend and keeping prices below key resistance levels.
Bitcoin rebounded 13% from its yearly low of $76.5K, driven by renewed buying momentum. It broke above the $84,400 resistance, with the 100 EMA reinforcing this level as support.
