Bitcoin has had a rough few days, hitting an all-time high (ATH) last Tuesday before going into a sharp 15% correction. This period of heightened stability has left investors divided, with some expecting continued gains and others bracing for more downside. The market is closely monitoring Bitcoin's ability to regain its bullish trend.
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Leading analyst Ali Martinez has revealed critical data from Bitcoin's cost base distribution, identifying $97K as a critical support level. Martinez emphasizes that maintaining this level is essential for BTC to keep up with the rise and stop deeper corrections. However, Bitcoin's price action remains uncertain as it struggles to break through the psychological barrier at $100K.
While many investors see the recent correction as a healthy reset after BTC's meteoric rise, a failure to push higher could signal a longer consolidation phase. With Bitcoin trading near extreme levelsthe coming days will be crucial in determining whether he resumes his climb to new heights or faces additional headaches.
Bitcoin keeps above the main demand
Bitcoin is holding steady above a critical demand level around $97,000, offering bulls a beacon of hope after recent volatility. This stability follows a brief test of lower demand at $92,000, which confirmed the market's ability to absorb selling pressure. Although the short-term recovery is encouraging, the price is still at an important level that could determine its path before the new year.
Martinez recently shared insights from the spread of Bitcoin's cost base, emphasizing the importance of the $99,000 – $97,000 range. His data highlights this zone as the most important support threshold for Bitcoin, acting as a critical line in the sand for the current uptrend.
However, Martinez warns of the potential risk if Bitcoin fails to hold this range: “We really don't want this level to be against it.”
As Bitcoin consolidates near these key levels, sentiment across the market remains uncertain. Bulls are eager to see BTC regain momentum and push towards all-time highs, but the psychological resistance around $100,000 continues to loom large. Meanwhile, bears argue that the recent pullback could be a sign of a larger correction to come.
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The coming days will be crucial as the year draws to a close. With market participants looking for clarity, Bitcoin must maintain this critical support area or risk losing its support structure. Whether the next big move up or down will be largely dependent on how BTC reacts within this price range.
BTC Liquidity test
Bitcoin is trading at $97,000, showing resilience after retreating from local levels of $92,000. This bounce highlights the market's strong 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 stage another rally towards its ATH.
However, the $100,000 psychological barrier is looming large as the next major hurdle for bulls. Getting past this point has been difficult, with previous attempts falling short. A successful break above $100,000 in the coming days is likely to restore bullish momentum and set the stage for Bitcoin to reach new ATHs, restoring confidence among investors and traders.
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On the flip side, failure to break this critical resistance could result in a less favorable situation. If Bitcoin struggles to pull above $100,000, market sentiment could decrease, leading to more selling pressure. In such a case, BTC could face another decline, testing key support levels again.
Featured image from Dall-E, chart from TradingView
