Key Points
- Bitcoin [BTC] needs to maintain above $100K to sustain its uptrend.
- The cryptocurrency’s current holders’ profitability relies on this level.
Bitcoin [BTC] has witnessed a minor setback, falling by 2.55% after reaching a high of $106K. The cryptocurrency was trading around $102K at the time of writing, indicating a 2.55% decrease on daily charts.
Before this drop, Bitcoin was on a rising trend, increasing by 8.85% on weekly charts. CryptoQuant analyst Crazyyblock suggests that it is crucial for Bitcoin to stay above the $100K support level.
Importance of the $100K Mark
According to Crazyyblock, Bitcoin needs to hold above $100K as the current holders’ profitability depends on this level. If Bitcoin fails to maintain this crucial level, it could trigger panic selling or loss-induced liquidation among market participants.
This is particularly true for Bitcoin investors who have held their investments for 1 to 3 months. This group is known for emotional selling, reacting quickly to market changes and engaging in short-term strategies. If Bitcoin cannot maintain the $100K level, these participants may opt to sell, even at a loss, creating potential selling pressure.
Bitcoin’s ability to defend this level will steer the market’s direction, making it a crucial point for either an upward or downward trend.
Can Bitcoin Keep Its Uptrend?
Despite the recent pullback, Bitcoin remains in a bullish phase according to AMBCrypto’s analysis. The market conditions suggest another upward movement.
Bitcoin’s Taker Buy Sell Ratio stands at 1.12, indicating that buyers are dominating the market, creating higher buying pressure. This shows bullish sentiments as investors accumulate BTC, anticipating further gains.
Moreover, Bitcoin is showing strong upward momentum as seen through the rising RVGI and ADR. The RVGI has moved upward, indicating a bullish crossover four days ago. This suggests a strong upward momentum as the bears seem to lose their grip. Bitcoin’s ADR also indicates that BTC is making more gains than losses.
The recent decline appears to be a market correction before another uptrend attempt as most market participants remain bullish and expect prices to rise. If the current sentiment holds, BTC could reclaim $105K and attempt a breakout above $106K. However, if the correction continues, it might drop below $100K, leading to a further dip to $98K.
