In an exciting turn of events, Bitcoin is currently trading above the key $95k level, showing an impressive upturn of more than three percent in the last 24 hours. The world’s premier cryptocurrency is indicating a short-term bullish divergence as it endeavors to regain a pivotal Fibonacci level, a trend which is occurring concurrently with a new bullish cross on the Bitcoin indicator.
Based on data from Santiment, Bitcoin’s Mean Dollar Invested Age (MDIA) has experienced a significant decrease since mid-October 2023. This statistic, which measures the average age of coins in wallets, indicates a bullish trend. The drop in MDIA reflects that coins which were previously dormant in wallets are now in circulation. The average age of Bitcoin has fallen from 637 days to 466 days, a substantial 27% drop, with a further decrease of 9% occurring in just the past three weeks. If MDIA continues to fall, it implies that the market is transitioning into a bull phase.
Josh, an analyst at Crypto World, maintains that Bitcoin is still overall bullish, demonstrating robust signs of a potential long-term bull run, despite a few short-term pullbacks. However, resistance still exists at the 16.8 Fibonacci extension, estimated to be around $100,000 to $102,000.
Bitcoin is making a concerted effort to reclaim levels in the region of $94,000 to $95,000. After a brief dip below this level, the cryptocurrency is now striving to break back above. A close above $95,000 in the forthcoming days could indicate a promising short-term move.
If Bitcoin successfully breaches the $95,000 level, the next resistance ranges to observe are around $100,000 and $102,000. A confirmed breakout above these levels could potentially propel Bitcoin to higher levels, possibly reaching $113,000. Conversely, support is likely to be found around $89,000 in the event of a pullback.
In the short term, Bitcoin is still displaying a bearish divergence on the 12-hour chart, suggesting that we may see some choppy price action in the coming days. While this could result in a minor pullback or sideways movement, it should not be a major cause for concern. Historically, similar patterns have precipitated breakouts following a consolidation period.
The confirmation of Bitcoin breaking above $100,000 could trigger a significant short squeeze, pushing the price considerably higher. This would echo the events of the previous bull cycle, when Bitcoin surpassed the $20,000 mark.
This evolving situation serves as a reminder of Bitcoin’s dynamism and potential for growth, with eyes around the world keenly watching its progress.
