bitcoin has faced significant selling pressure above the $100,000 mark, leaving the market leader struggling to regain momentum. After a stellar rally, btc is now testing its ability to break through critical resistance, as traders and investors remain cautious about its near-term trajectory.
Leading analyst Axel Adler recently shared his thoughts on x, highlighting key metrics that suggest the market is entering a cooling phase. According to Adler, the Block P/L Count Ratio model, an indicator that tracks profits and losses within each block on the btc network, shows a gradual decrease in activity as profits are made. Investors taking maximum profits at $90,000 to $100,000 levels have contributed to this move, indicating a possible slowdown after the bullish frenzy.
The current market environment reflects a mix of optimism and hesitation as btc consolidates near its psychological resistance. While overall sentiment remains cautiously bullish, cooling market dynamics could extend the consolidation phase.
As bitcoin struggles to overcome this critical barrier, the next few days will be critical in determining its direction. Whether btc manages to surpass $100,000 or settles into a broader consolidation, its performance will likely set the tone for the broader crypto market.
bitcoin faces risks
bitcoin's struggle to reclaim the $100,000 mark has placed the market leader at a crossroads. While the price is showing resistance, each day it passes below this critical level raises questions about the strength of the bullish structure. To confirm a continued rally, btc must break and stay above $100,000, indicating renewed confidence in the market.
<a target="_blank" href="https://x.com/AxelAdlerJr/status/1875447535025676383″ target=”_blank” rel=”noopener nofollow”>Axel Adler recently shared critical thoughts on xshedding light on current market dynamics. Adler's analysis focuses on the Block P/L Count Ratio model, a key metric that tracks profit and loss activity within each 10-minute bitcoin block. The data reveals that after investors set maximum profits between $90,000 and $100,000, the metric has fallen significantly, from levels above 100,000 to 159. This sharp drop suggests a cooling of the market as trading activity slows and Participants reevaluate their positions.
Adler notes that the amount of time btc will spend at these levels largely depends on demand. If buying pressure remains stagnant, the market could struggle to maintain its current valuation, increasing the risk of a deeper correction. Conversely, an increase in demand could quickly push btc back above $100,000, reigniting the bullish trend.
The next few days will be crucial in determining the direction of bitcoin. A decisive rally to $100,000 would solidify its bullish outlook, while a prolonged consolidation below this mark could test investor confidence. As traders monitor these developments, bitcoin's ability to navigate this crucial phase will likely shape the broader trajectory of the crypto market.
Fights below the key moving average
bitcoin is currently trading below the critical 200 4-hour moving average at $98,208, a key level that must be recovered to confirm a bullish structure. This mark has become a major resistance point and the price appears to be establishing a lower high within the main liquidity range between $108,000 and $92,000. This indicates potential risks of further decline if the momentum does not change soon .
The $98,208 level is critical for bitcoin's near-term trajectory. Failure to break this moving average could indicate that bearish pressure remains dominant, which could push the price towards areas of lower demand closer to $92,000. Such a move would challenge the broader bullish narrative and test investor confidence.
For the bulls to regain control, btc must decisively surpass the $100,000 mark in the coming days. A successful move above this psychological and technical level would likely trigger a strong rally, attracting renewed buying interest and solidifying the bullish structure.
Featured image of Dall-E, TradingView chart
