Analyst: BTC faces strong resistance at $74K and $78.8K

Although Bitcoin is rallying on the back of declining exchange supply and rising spot demand, it is likely to face significant resistance at $74,000 and $78,880, according to crypto analyst Murphy (@Murphychen888) on X. He noted that the first resistance level of $74,000 falls within the MVRV (Market Value to Realized Value) range, making an upward break difficult now that a bear market has begun. Additionally, $78,880 represents a strong resistance zone as it is the average cost basis for long-term holders. Murphy pointed out that these holders account for 2.42 million BTC, a volume that current demand levels are unlikely to absorb in a single push. The analyst also highlighted a buildup of "Long Gamma" positions at the $74,000 level in the options market. Murphy anticipates that the peak of this rebound will likely form between $74,000 and $79,000, with future price action depending on whether BTC can breach this range.