Bitcoin has had a rough few days, reaching an all-time high (ATH) last Tuesday before retreating to a sharp 15% correction. This period of extreme volatility has divided investors, with some anticipating a continuation of the uptrend while others are bracing for further downside. The market is closely monitoring Bitcoin’s ability to regain its upward momentum.
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Senior Analyst Ali Martinez highlighted important data from Bitcoin’s cost basis distribution, pointing to $97,000 as a crucial support level. Martinez stresses that maintaining this level is essential for Bitcoin to maintain its uptrend and stave off deep corrections. However, Bitcoin’s price action remains uncertain as it struggles to break through the psychological barrier at $100,000.
While many investors view the recent correction as a healthy reset after BTC’s rapid rise, failure to push higher could signal a longer-term consolidation phase. With Bitcoin trading near pivotal levels, the coming days will be crucial in determining whether it resumes its rise to new highs or faces additional headwinds.
Bitcoin contract is higher than the main order
Bitcoin remains steady above the critical demand level of around $97,000, providing a beacon of hope for the bulls after recent volatility. This stability comes after a short test of low demand at $92,000, which strengthened the market’s ability to absorb selling pressure. While the short-term recovery is encouraging, the price remains at a pivot point that could determine its path into the new year.
Martinez recently shared insights from Bitcoin’s cost-based distribution, emphasizing the importance of the $99,000-$97,000 range. His data highlights this area as the most important support threshold for Bitcoin, acting as a crucial line in the sand for the current uptrend.
However, Martinez warns of potential downside risks if Bitcoin fails to maintain this range: “We don’t really want this level to become resistance.”
With Bitcoin consolidating near these key levels, sentiment across the market remains inconclusive. Bulls are looking to see BTC regain momentum and push toward all-time highs, but psychological resistance around $100,000 still looms. Meanwhile, bears say the recent pullback could be a sign of a larger correction imminent.
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The coming days will be crucial as the year approaches its end. As market participants search for clarity, Bitcoin must hold this important support area or risk losing its bullish structure. Whether the next major move is up or down will depend largely on how BTC reacts within this price range.
BTC tests liquidity
Bitcoin is trading at $97,000, showing resilience after rebounding from local lows of $92,000. This bounce highlights strong market demand at lower levels, reinforcing the bullish narrative at the moment. The price structure remains intact above $97,000, suggesting that BTC is well positioned to stage another rally towards ATH.
However, the psychological barrier of $100,000 looms as the next major hurdle for the bulls. This level has proven difficult to overcome, as previous attempts have failed. A successful breakout above $100,000 in the coming days is likely to reignite bullish momentum and pave the way for Bitcoin to reach new ATHs, restoring confidence among investors and traders.
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On the other hand, failure to break this critical resistance may lead to a less positive scenario. If Bitcoin struggles to gain traction above $100,000, market sentiment may fluctuate, leading to increased selling pressure. In such a situation, Bitcoin may experience another pullback, testing key support levels again.
Featured image by Dall-E, chart from TradingView
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