This is why the Bitcoin price continues to stabilize between $96,000 and $98,000

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Why is Bitcoin stabilizing between $96,000 and $98,000?

Ali Martinez mentioned in an X post that Bitcoin's key support level is between $98,830 and $95,830, with over 1.16 million BTC buying records within this range. These investors continue to support Bitcoin, keeping its price stable between $96,000 and $98,000. If these holders choose to sell, the price of Bitcoin may drop below $90,000.

After Federal Reserve Chairman Powell hinted at adopting a hawkish policy, the price of Bitcoin fell below $100,000, triggering a wave of selling. However, despite the price drop, most Bitcoin holders remain profitable, providing some support for Bitcoin. According to IntoTheBlock data, 86% of Bitcoin holders are still in profit, with only 4% at a loss and 9% at break-even.

Bitcoin holder sentiment remains positive

Martinez also noted that despite the price drop, holders remain optimistic about Bitcoin's prospects and continue to increase their positions. As of December, 74,052 BTC have flowed out of exchanges, indicating that bullish sentiment has not weakened.

Traders expect a bullish reversal

Martinez stated that market sentiment has reversed. While 62.17% of Binance traders were shorting when Bitcoin's price was at $108,000, now 55.44% of traders are bullish on Bitcoin's price and expect it to rebound from current levels.

Key support levels and potential downside risks

It is crucial for Bitcoin to maintain its price at $96,000. If it falls below this support, Martinez believes the price could further decline to $90,000 and $85,000. On the other hand, from a bullish perspective, analyst Justin Bennett stated that $110,000 remains an important target price for Bitcoin.

As of the publication of this article, the price of Bitcoin is around $97,000, having dropped over 3% in the past 24 hours. Despite significant market volatility, Bitcoin remains relatively stable, and the next few days will be critical, with investors needing to pay attention to support level breakouts and changes in market sentiment.