Bitcoin has had a volatile week, with sharp movements above and below the important $100,000 mark, but the price is still struggling to close and hold above this psychological level. The lack of clear guidance has divided investors, with some planning to break into uncharted territory and others preparing for a potential correction.
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CryptoQuant analyst Axel Adler shared key data shedding light on the current dynamics of Bitcoin. According to Adler, the nearest support level is $94,500, representing the average purchase price for short-term holders (STH) holding coins for one week to one month. This metric underlines the importance of this level as a necessary threshold for maintaining market confidence.
As Bitcoin grapples with resistance at $100K, the $94.5K support will be critical in shaping the next level of price action. A successful defense at this point could bring back a strong momentum, and a breakdown could trigger a deeper discovery.
With the market in general still uncertainBitcoin movements in the coming days will be watched closely by traders and investors seeking clarity in an uncertain environment. The battle for $100K continues, and all eyes are on whether Bitcoin can claim this level as solid ground.
Bitcoin demand remains strong
Despite heavy selling pressure and sharp price action, Bitcoin demand remains strong, keeping the price above critical demand zones. Investors seem to be holding their ground, adding to a period of consolidation as they prepare for Bitcoin's next big move. The current sideways movement shows uncertainty in the market, but it nevertheless reinforces Bitcoin's price stability against volatility.
Axel Adler, famous CryptoQuant analyst, recently shared critical insights into Bitcoin support levels on X. According to Adler, the nearest support level is $94,500, which represents the average purchase price for short-term holders (STH) holding coins for a week to month. This level has become a key threshold, providing strong demand and acting as a safety net for BTC during periods of downward pressure.
Further analysis reveals that $80,800 marks the average purchase price for the wider STH group. This level is critical because it represents a zone of deeper liquidity that could lead to a more significant correction. These data points suggest that $94.5K and $80.8K will be key to watch in the coming days and weeks.
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As Bitcoin consolidates, the market is anticipating whether these key support levels will hold or break leading BTC into its next support level. The stakes are high, and investors are keeping a close eye on these liquidity zones.
BTC finds fuel under $100K
Bitcoin is trading at $98,000 after failing to sustain above the necessary $100,000 level over the past week. Despite this, the price remains stable, with bulls looking for a move to push BTC closer to regaining this mental threshold. The market will be watching closely as Bitcoin consolidates, signaling preparation for its next significant move.
There is a key resistance at $101,200, which analysts believe is crucial to trigger the next move. If Bitcoin successfully recovers and holds above this zone, it could pave the way for a strong bullish rally, driving the price into territory. without registration. Such a move would likely attract renewed interest and capital, reinforcing the current rally.
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However, the downside risk remains a concern. If Bitcoin does not break above $101,200 and miss the $94,500 support level – identified as a critical threshold by analysts – investors could see a correction level uncovered. This position would likely focus on deeper liquidity zones, such as $80,800, as potential support areas.
Bitcoin's ability to hold its ground and regain key levels will determine its direction in the coming days. Traders closely monitor price action for signs of strength or weakness amid growing market expectations.
Featured image from Dall-E, chart from TradingView
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