bitcoin has shown resilience by surpassing key demand levels, but the psychological and technical barrier of $100,000 remains unclaimed. This resistance has left investors and analysts in a state of uncertainty, with no clear short-term direction for the market leader. Despite this, a growing consensus among market experts suggests that btc will likely see a significant rise in the coming weeks.
Prominent analyst Axel Adler recently shared insightful data highlighting an intriguing trend in btc transactional activity. According to Adler, retail activity for transactions under $10,000 has fallen to its lowest point since the summer of 2021, a period marked by widespread market panic following China's mining ban. This decline in retail participation indicates that smaller investors are staying on the sidelines for now.
Adler suggests that this reduced retail presence could change dramatically once bitcoin recovers to higher levels, generating renewed interest and participation from smaller investors. This pattern aligns with historical cycles, where retail tends to re-enter the market as prices begin to gain momentum. With btc hovering just below $100,000, all eyes are on whether the bulls can break through and start a new phase of the rally. The next few weeks could be pivotal for bitcoin's trajectory.
bitcoin consolidates and retail investors wait
bitcoin has remained in a consolidation phase since November 22, when it first tested the $100,000 level. This major milestone initially generated immense optimism, but market sentiment quickly turned from extremely bullish to cautious and even bearish. Since then, bitcoin has struggled to regain its momentum, with price action limited below the psychological $100,000 barrier.
A notable trend during this period is the cooling of retail activity. Top analyst Axel Adler recently<a target="_blank" href="https://x.com/AxelAdlerJr/status/1876151399517704434″ target=”_blank” rel=”noopener nofollow”> shared an analysis about xrevealing that retail transactions involving amounts up to $10,000 are at their lowest level since summer 2021.
This period was marked by widespread market panic following China's mining ban, a time when retail investors largely abandoned the market. Adler suggests that this current stagnation could be a precursor to renewed retail interest, which typically increases as btc begins to recover.
Despite concerns about retail inactivity, many analysts remain optimistic about bitcoin's prospects. The general consensus is that the market structure remains intact and a break above $100,000 could catalyze a new wave of buying. However, there is still a risk if btc fails to reclaim this key level, which could lead to further declines and greater uncertainty. The next few weeks will be crucial in determining bitcoin's next move.
Is btc about to surpass $100,000?
bitcoin is currently trading at $98,800 after reaching $99,857 just a few hours ago. The price is testing the upper boundary of a critical psychological level, flirting with a break above the highly anticipated $100,000 mark. Market participants are eagerly awaiting a decisive move as breaking this level is expected to trigger a massive price increase.
The $100,000 milestone is not only a psychological barrier, but also an important supply zone where selling pressure has historically limited rallies. However, bitcoin's continued momentum towards this level indicates growing bullish momentum. Analysts believe that if btc manages to close above $100,000 and hold it as support, the market could enter a new phase of price discovery, with significant upside potential.
The anticipation surrounding this breakout is palpable as traders prepare for the possibility of further volatility. On-chain metrics suggest that buying pressure has been steadily increasing, with demand zones around $92,000 and $95,000 acting as strong support during recent consolidations. While the focus is immediately on bitcoin breaking the $100,000 barrier, failure to do so could lead to a short-term pullback, which could test lower support levels before another attempt.
Featured image of Dall-E, TradingView chart
