Bitcoin’s bullish momentum has slowed, struggling to maintain the bullish strength generated in recent weeks. Currently valued at $98,166, the Crypto King is hovering just below the psychological resistance of $100,000.
This stagnation, along with investor liquidations, raises concerns about the possibility of a sharp decline in BTC value.
Bitcoin Investors Are Worried
Bitcoin’s Liveliness Index continues to rise despite recent price volatility. This shows that long-term holders (LTHs) are increasingly loosening their hands by selling all their assets. LTHs, often considered the foundation of Bitcoin’s stability, are selling off assets to minimize potential losses from a possible price crash.
If this trend continues, mass selling by long-term holders could exacerbate downward price pressure. As LTHs are a crucial component to maintaining confidence in Bitcoin’s value, their exit from the market shows a lack of confidence in a sustained optimistic recovery. This change in sentiment could accelerate BTC’s decline.
Bitcoin’s macro dynamics also reflect a bearish trend. The Relative Strength Index (RSI) fell lower, struggling to stay above the neutral level of 50.0. The technical indicator’s weakening performance highlights the loss of bullish strength in recent trading sessions.
A falling RSI shows that Bitcoin is at risk of losing upward momentum. If this trend continues, it could dampen market optimism and push prices lower. Traders and investors are closely watching the RSI for signs of a reversal or continued decline.
BTC Price Prediction: Breaking Through Critical Resistance
Bitcoin price is currently trading at $98,166, just short of reaching the $100,000 resistance level that is important for further growth. Converting this level to support is necessary for BTC to maintain its bullish trajectory and reach new highs. However, the cryptocurrency is yet to demonstrate the buying pressure needed to achieve this.
Conversely, the bearish factors stated earlier suggest that Bitcoin could drop to $95,668. Losing this key support level could open the door to a deeper decline, with $89,800 emerging as a potential target. This scenario would mark a significant setback for BTC investors.
Conversely, if Bitcoin can reclaim $100,000 as support, it could rally to $105,000. Reaching this milestone will strengthen BTC’s position and open the door to a return to its all-time high (ATH) of $108,384. Such a recovery will require growing market confidence and strong buying activity.