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Bitcoin continues to struggle with the psychological level of $100,000, failing to break through this critical resistance after bouncing from all-time highs. This prolonged slump has sparked discussions about a potential correction or deeper correction as the market waits for confirmation of Bitcoin’s next major move. Both analysts and investors are watching the situation closely, eager to know whether the cryptocurrency will soar to new heights or succumb to selling pressure.
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Adding to these concerns, renowned analyst Martin recently highlighted troubling activity on the chain. More than 8,000 bitcoins, between five and seven years old, have been moved to the chain, raising questions about the long-term intentions of their owners. Historically, such moves often precede market turns, where increased selling pressure signals potential weakness.
Activity from these veteran wallets could reflect fading confidence or profit-taking, keeping Bitcoin below the $100,000 threshold. While the bulls and bears are still engaged in a battle for dominance, this important metric highlights the growing uncertainty. As Bitcoin’s path hangs in the balance, market participants are preparing to weigh in on whether this pivotal level will eventually turn into strong support – or mark the beginning of a downward correction.
Smart Money Transfer with Bitcoin
Since early December, Bitcoin has entered a long consolidation phase, struggling to establish clear momentum in either direction. Recent on-chain data suggests that whale activity plays a pivotal role in keeping the price low. According to chief analyst MartinA familiar entity – the ancient Bitcoin whale – has resurfaced, and made significant moves that could influence the course of the market.
Martin confirms that the movement of over 8,000 BTC mirrors the pattern seen just 10 days ago. At the time, the same whale had reportedly transferred more than 72,000 Bitcoin in total since the start of the consolidation phase. This whale, often referred to as “smart money,” was active as never before, suggesting strategic positioning rather than impulsive selling.
The implications of this activity are profound. As long as this whale continues to unload Bitcoin, selling pressure may keep Bitcoin below key psychological levels, extending the current consolidation period for a few more weeks. However, this accumulation and redistribution phase could set the stage for a massive rally once activity calms down.
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Analysts interpret this period as a preparation period by seasoned market participants, suggesting that when the dust settles, Bitcoin may see a strong bullish breakout.
BTC is above the main demand level
Bitcoin is currently trading at $95,000 after managing to stay above the critical support level of $92,000. Although the bears have dominated the market in recent weeks, they have been unable to break through the key demand areas at $92,000 and $90,000. These levels served as a strong base, preventing further declines and indicating resilience among buyers.
If Bitcoin continues to defend these crucial levels, it could set the stage for a quick challenge to its all-time high (ATH). Holding above $92,000 would boost bullish sentiment and attract renewed interest from traders and institutional investors eyeing the psychological level of $100,000.
However, the road ahead is by no means assured. A failed attempt to reclaim $100,000 may indicate exhaustion among buyers, which could lead to a deeper correction. Such a scenario could see Bitcoin revisiting lower support areas as market participants reevaluate their strategies.
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The coming weeks will be crucial for Bitcoin’s trajectory. Whether it rises to new highs or faces a major pullback, it will depend on its ability to hold key levels and overcome the psychological hurdles that have kept it below $100,000. Investors are watching closely, anticipating Bitcoin’s next decisive move.
Featured image by Dall-E, chart from TradingView