Key Points
- Bitcoin’s sustained uptrend must hold above $100K to avoid potential panic selling or loss-induced liquidation.
- Despite a recent pullback, market conditions suggest that Bitcoin’s bullish phase is likely to continue.
Bitcoin’s Current Market Position
After a consistent uptrend that saw Bitcoin (BTC) reach $106K, a slight retracement has occurred. As of the time of writing, BTC trades around $102K, reflecting a 2.55% decrease on the daily charts.
Prior to this drop, Bitcoin had been climbing, with an increase of 8.85% noted on the weekly charts. CryptoQuant analyst Crazyyblock has suggested that it’s critical for Bitcoin to maintain a support level above $100K.
Why the $100K Mark is Crucial
Crazyyblock asserts that the profitability of current Bitcoin holders depends on the coin maintaining a level above $100K. If this psychological level isn’t held, it could trigger panic selling or loss-induced liquidation among market participants.
Bitcoin investors in the 1 to 3-month age band, known for their emotional selling and short-term strategies, could choose to sell at a loss if the $100K support level isn’t maintained. This could potentially create selling pressure.
The ability of Bitcoin to defend this level is pivotal in determining the market’s direction, making it a key point for either an upward or downward movement.
Can Bitcoin Keep Up the Uptrend?
Despite the recent pullback, AMBCrypto’s analysis suggests that Bitcoin remains in a bullish phase. Current market conditions indicate potential for another upward movement.
Bitcoin’s Taker Buy Sell Ratio stands at 1.12, indicating a market dominated by buyers and a high buying pressure. This reflects bullish sentiments as investors accumulate BTC in anticipation of further gains.
Bitcoin has also started to experience strong upward momentum, as shown by the rising RVGI and ADR. The RVGI has moved upward, indicating a bullish crossover four days ago, signalling strong upward momentum.
Bitcoin’s ADR suggests that BTC is making more gains than losses. Therefore, the recent decline could be a market correction before another uptrend, as most market participants remain bullish and expect prices to rise.
If the current sentiment persists, BTC could reclaim $105K and attempt a breakout above $106K. However, if the correction continues, it could drop below $100K, potentially dipping further to $98K.
