Key Points
- Bitcoin [BTC] is approaching the $100K mark, despite strong resistance at $98.9K.
- Buying pressure remains high, but the possibility of a price correction looms.
Bitcoin [BTC] has been making steady progress towards the $100K mark, fuelled by favourable market conditions. However, the sustainability of this bull run raises questions as pressure to sell BTC could increase, potentially halting its upward trajectory.
Bitcoin Nears $100K
BTC has seen significant price increases over the past week, bringing it closer to the $100K milestone. At present, the cryptocurrency is trading at $98.2K, boasting a market capitalization of $1.94 trillion.
Crypto analyst Ali Martinez suggested that investors should consider selling 25% of their BTC holdings once the coin reaches the $173K-$200K range, and 30% when it enters the $200K-$300K range.
Analysing BTC’s Future
According to Glassnode’s data, BTC is trading within its expected range. The Pi Cycle Top indicator suggests that BTC’s potential market top stands at $121K, with its market bottom at $66K. This suggests that a move towards $100K is not overly ambitious.
Investor interest in purchasing Bitcoin remains high, with 65K BTC recently withdrawn from exchanges, representing over $6 billion. This indicates a significant boost to BTC’s buying pressure.
CryptoQuant’s data also shows high buying pressure, as evidenced by BTC’s decreasing exchange reserve. A drop in buying pressure usually signifies a likely continuation of a price uptrend, indicating investor confidence.
Furthermore, Bitcoin’s Coinbase Premium is currently in the green, indicating dominant buying sentiment among U.S. investors. This could further support BTC’s move towards $100K.
However, it’s important to note that BTC is facing strong resistance at $98.9K, as shown by the liquidation heatmap. Increased liquidation often serves as a hurdle, potentially leading to price rejection and correction.
For BTC to reach the $100K target, it’s crucial for it to break above the $98.9K resistance level.
Bitcoin’s Chaikin Money Flow (CMF), a measure of buying/selling pressure, has also seen an increase, further supporting the high buying pressure. However, the Money Flow Index (MFI) is currently in the overbought zone, which could prompt a sell-off and result in a price drop for BTC.
