In the recent moves of the cryptocurrency market, Bitcoin has once again demonstrated its volatility. Having tested levels below $95k, it has bounced back and is currently trading around $97k. This recent fluctuation has effectively erased the gains made in the past week, but Bitcoin bulls remain undeterred with their sights firmly set on the crucial $100k level.
The weekly chart offers an optimistic outlook for Bitcoin enthusiasts. It suggests we are still in the early stages of a significant bull market, a signal that was confirmed almost two months ago. Historically, these bullish signals can last for several months, potentially even stretching into 2025. However, it’s worth noting that even during a protracted bull market, Bitcoin can still be subject to short-term corrections or periods of sideways movement.
Josh, an analyst from Crypto World, has tabled his expectations that Bitcoin will encounter substantial resistance in the $100K to $102K range. The psychological barrier of $100K is anticipated to exert additional pressure, with traders keeping a keen eye on this level. If Bitcoin can breach this barrier, the next primary resistance could be encountered around the $113,000 mark.
In the immediate future, Bitcoin is facing resistance in the region of $94,000 to $95,000. If a pullback does occur, a key support level is expected to be found at $89,000. If Bitcoin dips below this level, additional support exists around $87,000. Failing to hold this level could see a drop towards $79,000.
When comparing Bitcoin’s current price action to its behavior in late 2020, we can see some intriguing parallels. In 2020, the market entered a bullish phase, punctuated by temporary pullbacks and periods of sideways consolidation. Currently, Bitcoin appears to be in a similar phase, indicating that while we might witness some choppy movements or minor corrections, the long-term bullish trend remains very much in play.
A liquidity heat map of Bitcoin reveals a major liquidity zone around the $100,000 level. If Bitcoin breaks this level, it could trigger a sharp upward movement. Conversely, there is also notable liquidity to the downside, between the $90,000 and $95,000 levels. This could provide some support if the price experiences a dip.
In summary, Bitcoin remains a dynamic and volatile player in the cryptocurrency market. Traders and investors alike should remain vigilant and prepared for potential fluctuations, while keeping an eye on the key support and resistance levels. The long-term outlook remains bullish, but the journey there may be marked by temporary pullbacks and periods of consolidation.
