Bitcoin price recently achieved an important milestone, crossing the $100,000 threshold for the first time in its history. Although the progress is a great achievement for the price of BTC, it also raises the question where does it go from here.
The consensus among many analysts is that price action is ongoing for Bitcoin. However, a crypto analyst on TradingView has issued a strong warning, calling this price point a “danger zone.” According to their technical view, reaching $100,000 could cause a significant correction in the price of Bitcoin up to the price level of $72,000.
Why $100,000 could be a turning point for the price of Bitcoin
After four failed attempts to break the $100,000 mark, Bitcoin has finally broken through the mental threshold and is now open to unlisted price range. Although the price of Bitcoin bounced back below $100,000 in the hours that followed, many investors remain optimistic, view this pull as a temporary stop and believe that Bitcoin's journey above $100,000 is far from over.
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The hope, however, is met with a different attitude from analysis of the TradingView platform, which offers a more cautious and bearish view. The analyst highlights the $100,000 level as a “magnet” that has consistently attracted price action over the past few weeks, serving as an attraction and resistance zone. With this in mind, the analyst's view of price action is bearish, largely predicting a retest of $94,000. From here, the analyst expects a market structure break (MSB), which would trigger a wider correction for BTC price.
Interestingly, the analyst predicted breaks down the $94,000 would result in a retest price level of $88,000. If Bitcoin were to break below the $88,000 support, the analyst expects further declines in prices that would bring the price of Bitcoin to a unique target area just above $72,200.
Bullish sentiment is greater than Bearish sentiment
If the bearish scenario described by the analyst materializes, it could plunge the crypto market into another bear market, with other cryptocurrencies mirroring Bitcoin's downward trajectory and erasing recent price gains.
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However, this is still a prediction rather than the an assessment of the current dynamics of the crypto market. Currently, the crypto market is still engaging in a bullish mood, as shown by the Fear & Greed index, which is currently at a high of 81. potential increases of nearly $140,000.
At the time of writing, the price of Bitcoin is trading at $98,350. Interestingly, the recent break above $100,000 led to a retest of $94,000 in the last 24 hours. However, the price of Bitcoin rebounded from $94,000 instead of breaking below. Despite this rebound, the major digital currency may not be out of the woods yet.
Featured image created by Dall.E, chart from Tradingview.com
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