Bitcoin has had difficulty establishing support at $100,000 over the past six weeks, despite multiple attempts. However, recent market trends suggest this may soon change.
The significant drop in selling activity, coupled with a change in investor sentiment, creates a promising backdrop for Bitcoin’s price move.
Bitcoin investors are tired of selling
Bitcoin’s short-term on-chain price base represents a major change in market conditions. Currently, Bitcoin is trading at around 7% above its short-term holder (STH) base price of $88,135. This price shows growing confidence among new investors. However, failure to stabilize above this level could signal a decline in sentiment, which typically leads to a larger market correction.
Bitcoin’s ability to maintain its current price above the STH base price is important. If the price falls below this level, it could indicate hesitation among short-term investors. On the contrary, holding above this level can increase confidence and strengthen optimistic sentiment in the market.
Macro momentum indicators also highlight Bitcoin’s recovery potential. Real profits fell to a three-month low, signaling an easing of selling pressure. This bearish activity shows that investors are choosing to hold rather than exit, suggesting bearish sentiment is weakening.
The decline in real returns provides Bitcoin with an opportunity to regain momentum. With the number of sellers falling, buying pressure could prevail, paving the way for a sustained recovery. This change will give Bitcoin the space it needs to reach key resistance levels.
BTC price prediction: Overcoming the hurdles
Bitcoin is currently trading at $94,422, just below the $95,668 resistance level. This hurdle is the final test before the cryptocurrency can aim for the $100,000 mark. Breaking through this resistance could spark fresh bullish momentum, bringing BTC closer to reaching this key threshold.
Current factors support a strong case for Bitcoin. Surpassing $95,668 would pave the way for a sustained upward move. If the momentum continues, BTC could exceed $100,000, setting a new standard for price direction.
However, failure to surpass $95,668 could lead to a correction. Bitcoin could retest the support at $93,625, and a loss of this level could see the price fall further to $92,005. Such a decline would negate the bullish outlook and delay recovery efforts, leaving the market in a state of uncertainty.