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The Bitcoin price recently reached a monumental milestone, crossing the $100,000 threshold for the first time in its history. While the breakthrough is a significant achievement for the BTC price, it also begs the question of where it goes from here.
The consensus among many analysts is for continued bullish price action for Bitcoin. However, a crypto analyst on TradingView has issued a clear warning, labeling this price as a ‘danger zone’. According to their technical outlook, reaching $100,000 could trigger a massive correction in the Bitcoin price to the $72,000 price level.
Why $100,000 Could Be a Turning Point for the Bitcoin Price
After four failed attempts to cross the $100,000 mark, Bitcoin has finally crossed the psychological threshold and it now open for unknown price range. Although the Bitcoin price fell below $100,000 in the following hours, Many investors remain optimistic, We view this retracement as a temporary setback and believe Bitcoin’s journey above $100,000 is far from over.
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However, the optimism is met with a contrasting perspective from an analysis from the TradingView platform, which offers a more cautious and bearish outlook. The analyst highlights the $100,000 level as a “magnet” that has consistently attracted price activity in recent weeks and served as a critical zone of attraction and resistance. With this in mind, the analyst’s outlook is for bearish price action, essentially predicting a retest of $94,000. From here, the analyst expects the occurrence of a market structure break (MSB), which would in turn trigger a broader correction for the BTC price.
Interestingly, the analyst predicted that breaks under $94,000 price level would lead to a retest of $88,000. Should Bitcoin break below the $88,000 support, the analyst foresees further price declines that would drive the Bitcoin price to an ideal target zone just above $72,200.
Bullish sentiment outweighs bearish sentiment
If the bearish scenario outlined by the analyst comes to fruition, it could plunge the crypto market into another bear market, with other cryptocurrencies mirroring Bitcoin’s downward trajectory and erasing recent price gains.
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However, this remains a prediction rather than a prediction assessment of the current dynamics of the crypto market. Currently, the crypto market continues to bask in bullish sentiment, as evidenced by the Fear & Greed Index, which currently stands at an extreme greed level of 81. A few analysts have suggested that Bitcoin’s price may still have room to rise, with some predictions. potential highs near $140,000.
At the time of writing, the Bitcoin price is trading at $98,350. Interestingly, the recent break above $100,000 led to a retest of $94,000 in the last 24 hours. However, Bitcoin price recovered from $94,000 instead of breaking below. Despite this recovery, the leading cryptocurrency may not be out of the woods yet.
Featured image created with Dall.E, chart from Tradingview.com