The $100K Hurdle: A Psychological and Technical Barrier
Bitcoin’s recent attempt to breach the $100,000 mark faced significant resistance, with a substantial sell wall between $99,300 and $100,000. This barrier, totaling nearly $300 million in liquidity, has proven challenging for bulls to overcome. Material Indicators highlighted this obstacle, noting that while there has been slight erosion, the sell wall remains formidable.
Divergent Trader Perspectives: Retracement or Rally?
The crypto community is split on Bitcoin’s next move. Some traders anticipate a deeper pullback, eyeing the $90,000 level as a potential support zone. For instance, Crypto Chase identified $90,000 as an “optimal scenario” for a retracement. Conversely, others see bullish signals, such as promising divergences on the four-hour relative strength index (RSI), suggesting that a surge beyond $100,000 could be on the horizon.
Key Support Levels to Monitor
Analyzing Bitcoin’s realized price distribution reveals critical support levels at $97,500, $96,450, and $94,300. Holding above these zones is crucial for maintaining bullish momentum. Additionally, a significant bid liquidity wall is forming above $97,000, indicating a potential retest of this support in the near term.
Conclusion: Navigating the Uncertainty
As Bitcoin hovers near the $100,000 threshold, traders must exercise caution. The presence of substantial sell-side liquidity and mixed technical indicators suggest that the market could move in either direction. Monitoring key support and resistance levels will be essential for making informed decisions in this volatile environment.
This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions.
