Bitcoin Value Examination: Could BTC Plummet Below $100K Following Recent Denial?
Alright, let's break down the current situation with Bitcoin. The digital coin has cruised close to its record-breaking high of $109K, showing some serious bullish energy. But, you guessed it, the bull run has hit a brief pause, probably preparing for a consolidation or a corrective phase before the next major breakout.
Tech-wise, the daily chart shows Bitcoin broke through the big psychological barrier at $100K and soared towards its all-time high of $109K. However, the party halted at this critical obstruction, filled with eager sellers ready to cash in and anticipating a downturn. There's a good chance that Bitcoin will experience a temporary pullback or sideways shuffle towards the robust support of $100K before making another bold move above $109K, smashing previous record highs.
Now, let's dive into the 4-hour chart. There, it's more apparent that Bitcoin's momentum weakens around the $109K hurdle. After testing this level, the coin lost steam, forming a pattern that resembles a potential double-top. Adding to this, a clear bearish divergence between the price and the RSI suggests that sellers are gradually gaining the upper hand as the bullish vibe fades. All these points point towards a likely minor setback or sideways move around the $100K zone, followed by another strong breakout attempt.
As for the on-chain analysis, things look slightly brighter. In spite of Bitcoin nearing its all-time high around $109K, profit-taking action is almost inevitable. This prolonged consolidation around the ATH zone is mainly due to profit realization by the short-term holders and retail traders. However, the recent behavior of long-term holders (LTHs), who have owned their assets for over 150 days, tells a different story. The LTH SOPR (Spent Output Profit Ratio) metric has been on a steady decline, which means LTHs are not engaging in significant profit-taking. Instead, they appear to be hoarding, suggesting confidence in higher price targets and the expectation of new all-time highs. Therefore, the current consolidation phase seems to be driven by the short-term players. Based on this behavior, Bitcoin is likely to resume its bullish advance following this pause, stirring a possible fresh impulsive rally and new all-time highs in the mid-term.
So, the bottom line is, Bitcoin is facing a brief pause before making another bullish stride. Whether you're a seasoned trader or just getting started, keep an eye on these critical levels as the market gears up for its next big move. Don't forget to stay informed and make smart decisions!
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Sources:
- Yahoo Finance (BTC price data and historic maximums)
- Cointelegraph (institutional support, updated on-chain metrics)
- The Motley Fool (analyst predictions for 2021)
- Bloomberg Intelligence (analyst predictions for 2025)
- Forbes (institutional adoption and macroeconomic factors)
- Given the current situation with Bitcoin, short-term traders might want to practice technical analysis to potentially identify opportunities during this brief pause before the next major breakout in finance.
- During this consolidation phase, long-term holders (LTHs) are showing confidence in higher price targets for Bitcoin, as indicated by a declining LTH SOPR metric, suggesting they are hoarding the digital coin.
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