The $100k price for Bitcoin is an important price point that many investors and traders consider a "reasonable" mark for a major correction or confirmation of a long-term uptrend. To better understand the significance of this resistance, several factors can be analyzed:
Psychological resistance:
The $100k price level is a significant psychological milestone for the market, not only for Bitcoin but also for other assets. This is an easily memorable number and can create significant attention from retail investors, institutions, and the media. As Bitcoin approaches this threshold, some investors may start to take profits, causing a slight correction.
Historical price:
The $100k level is a milestone that Bitcoin has never reached in the past. Therefore, breaking this resistance will create strong confirmation for the uptrend, potentially leading to a stronger "wave" of increase, especially as large institutions and ETF funds continue to invest.
Impact of BTC.D:
When BTC reaches this price level, BTC.D will affect the cash flow in the market. If BTC.D increases significantly, it may push altcoins into a correction state. Conversely, if BTC.D decreases and cash continues to flow into altcoins, assets other than Bitcoin will have the opportunity for strong growth.
Market sentiment index:
Indicators such as the Fear & Greed Index or the levels of participation from institutional investors will also reflect market sentiment at this price level. A strong sign of greed might indicate that the market is being inflated, and this could lead to a correction or a "bull trap."
Leverage and margin call:
Investors using high leverage may face a "margin call" if the price fails to maintain or breaks the $100k level. This could create a sell-off, leading to a temporary price drop.
