Bitcoin has had a whirlwind few days, hitting an all-time high (ATH) last Tuesday before spiraling into a sharp 15% correction. This period of heightened volatility has divided investors, with some expecting a continued uptrend, while others are bracing for more downside. The market is keeping a close eye on Bitcoin’s ability to regain its bullish momentum.
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Top analyst Ali Martinez has highlighted critical data from the Bitcoin cost basis distribution, pointing to $97,000 as a crucial support level. Martinez emphasizes that holding this level is essential for BTC to maintain its uptrend and fend off deeper corrections. However, Bitcoin’s price action remains uncertain as it struggles to break the psychological barrier of $100,000.
While many investors see the recent correction as a healthy reset after BTC’s meteoric rise, the failure to move higher could be a sign of an extended consolidation phase. With Bitcoin trading at crucial levels, the coming days will be crucial in determining whether it will resume its climb to new highs or face additional headwinds.
Bitcoin remains above key demand
Bitcoin is holding steady above a critical demand level around $97,000, providing a beacon of hope for bulls after recent volatility. This stability follows a brief test of lower demand at $92,000, which strengthened the market’s ability to absorb selling pressure. While the near-term recovery is encouraging, the price remains at a crucial point that could determine its trajectory into the new year.
Martinez recently shared insights from the Bitcoin cost basis distribution, highlighting the importance of the range between $99,000 and $97,000. His data highlights that this zone is the key support threshold for Bitcoin, acting as a critical line in the sand for the current uptrend.
However, Martinez warns of the potential downside risk if Bitcoin fails to hold this range: “We really don’t want this level to become resistance.”
While Bitcoin consolidates near these key levels, market sentiment remains indecisive. Bulls are eager to see BTC regain momentum and head towards record highs, but psychological resistance around $100,000 remains high. Meanwhile, bears argue that the recent pullback could be a sign of a bigger correction to come.
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The next few days will be crucial as the year draws to a close. With market participants looking for clarity, Bitcoin must hold this critical support zone or risk losing its bullish structure. Whether the next big move will be up or down will depend heavily on how BTC reacts within this price range.
BTC Liquidity Testing
Bitcoin is trading at $97,000, showing resilience after recovering from the local low of $92,000. This rebound highlights the market’s strong demand at lower levels, reinforcing the bullish narrative for the time being. The price structure remains intact above $97,000, indicating that BTC is well positioned to stage another rally towards its ATH.
However, the $100,000 psychological barrier looms as the next big hurdle for bulls. This level has proven difficult to overcome, with previous attempts falling short. A successful break above $100,000 in the coming days would likely revive 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, the inability to break through this critical resistance could create a less favorable scenario. If Bitcoin struggles to gain traction above $100,000, market sentiment could falter, leading to increased selling pressure. In such a case, BTC could face another recession, which would once again test key support levels.
Featured image of Dall-E, chart from TradingView
