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The Bitcoin price has fallen below the psychological level of $100,000 and is now between $96,000 and $98,000. Crypto analyst Ali Martinez provided insight into why Bitcoin could hold well within this range.
Why the Bitcoin price remains stable between $96,000 and $98,000
In one X messageAli Martinez noted that one of the key support levels for the Bitcoin price is between $98,830 and $95,830, with 1.09 wallets buying over 1.16 million BTC. This explains why Bitcoin remains stable between $96,000 and $98,000 investors who bought between this level continue to provide massive support for the flagship crypto.
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As Martinez suggested, it is important that these holders remain stable as a wave of sell-off could even push the Bitcoin price below $90,000. The flagship crypto dropped below $100,000 following the recent speech by Jerome Powell of the Federal Reserve, in which he hinted at an aggressive stance by the US Central Bank.
This led to a massive wave of sell-off as a Hawkish Fed paints a bearish picture for risky assets like Bitcoin. However, despite the lower Bitcoin price drop, most Bitcoin holders continue to make profits, which is positive for the flagship crypto. Data from IntoTheBlock shows that 86% of Bitcoin holders are in the money, 4% are out of the money and 9% are at the money.
These Bitcoin holders still seem optimistic about the leading cryptocurrency as they continue to accumulate more BTC. In an
Traders anticipate a bullish reversal
Ali Martinez suggested that crypto traders are anticipating a bullish reversal in the Bitcoin price from current levels. This came as he revealed that traders on Binance topped out, with 62.17% shorting Bitcoin while it was trading at $108,000. Now Martinez says sentiment has turned, with 55.44% of this trade now looking for a dip below $96,000.
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Meanwhile, it is crucial that the Bitcoin price holds this $96,000 as Martinez warned that if BTC loses this support, it could fall below $90,000. The analyst stated that based on the Fibonacci level, if Bitcoin loses $96,000, the next area of focus will be $90,000 and $85,000. Meanwhile, from a bullish perspective, crypto analyst Justin Bennett suggested that the $110,000 target is still in focus for the Bitcoin price.
At the time of writing, the Bitcoin price is trading around $97,000, down more than 3% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com