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bitcoin has had a dizzying few days, hitting an all-time high (ATH) last Tuesday before falling into a sharp 15% correction. This period of increased volatility has left investors divided, with some expecting continued uptrend, while others are bracing for further declines. The market is closely monitoring bitcoin's ability to regain its bullish momentum.
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Prominent analyst Ali Martinez has highlighted critical data from bitcoin's cost base distribution, pointing to $97,000 as a crucial support level. Martínez emphasizes that maintaining this level is essential for btc to maintain its bullish trend and avoid deeper corrections. However, bitcoin's price action remains uncertain as it struggles to break the psychological $100,000 barrier.
While many investors see the recent correction as a healthy reset after btc's meteoric rise, the failure to rise further could indicate a longer consolidation phase. With bitcoin trading near crucial levels, the next few days will be critical 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 of around $97,000, offering a ray of hope for bulls after recent volatility. This stability follows a brief test of lower demand at $92,000, which reinforced the market's ability to absorb selling pressure. While the short-term recovery is encouraging, the price remains at a fundamental point that could determine its trajectory heading into the new year.
Martinez recently shared insights on the distribution of bitcoin's cost base, emphasizing the importance of the $99,000 to $97,000 range. Their data highlights this zone as the most significant support threshold for bitcoin, acting as a critical line in the sand for the current bullish trend.
However, Martínez warns of the possible downside risk if bitcoin fails to maintain this range: “We really don't want this level to become resistance.”
As bitcoin consolidates near these key levels, sentiment across the market remains indecisive. Bulls are eager to see btc regain momentum and advance towards all-time highs, but psychological resistance around $100,000 continues to loom large. Meanwhile, bears argue that the recent pullback could be a sign of an imminent larger correction.
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The next few days will be crucial as the year comes to a close. As market participants seek clarity, bitcoin must hold this critical support zone or risk losing its bullish structure. Whether the next major move will be up or down will largely depend on how btc reacts within this price range.
btc Test Liquidity
bitcoin is trading at $97,000, showing resistance after recovering from local lows of $92,000. This bounce highlights the strong market demand at lower levels, reinforcing the bullish narrative for now. The price structure remains intact above $97,000, indicating that btc is well positioned to mount another rally towards its ATH.
However, the psychological barrier of $100,000 is emerging as the next major obstacle for the bulls. This level has proven difficult to overcome, and previous attempts were not enough. A successful breakout above $100,000 in the coming days would likely reignite bullish momentum and set the stage for bitcoin to hit new ATHs, restoring confidence among investors and traders.
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On the other hand, failure to overcome this critical resistance could trigger a less favorable scenario. If bitcoin struggles to gain ground above $100,000, market sentiment may falter, leading to increased selling pressure. In such a case, btc could face another downturn, testing key support levels once again.
Featured image of Dall-E, TradingView chart
