$BTC The Bitcoin price experienced a significant pullback of 9%, roughly $9,000, after nearing the $100,000 mark. However, it seems that the correction may have run its course, and Bitcoin bulls are regaining control. The key question now is whether this momentum can drive the cryptocurrency to reach a new all-time high.
A Quick Yet Notable Correction
In just four days, Bitcoin’s price dropped more than $9,000 from its near $100,000 peak. As the digital asset approaches this milestone, it’s likely that breaking through the $100,000 level may take several attempts. Additionally, high volatility should be expected during this process.
Was the Pullback Driven by Long-Term Holders or Technical Factors?
As Bitcoin starts to climb again, many in the crypto community are pointing to long-term holders as a possible cause of this latest dip. While this might be a factor, technical indicators suggest that the price was due for a correction. The actions of long-term holders may explain why Bitcoin’s price dropped as significantly as it did during this phase.
According to the 8-hour chart, the drop from just under $100,000 reached the key Fibonacci retracement level of 0.786. This indicates that the correction was substantial and likely necessary for the market’s health. Support was provided by the 50-day Simple Moving Average (SMA), and momentum indicators on shorter timeframes began to turn upward, signaling a potential recovery.
Bitcoin’s Bullish Outlook on the Monthly Timeframe
Looking at the broader monthly chart, Bitcoin’s long-term outlook remains highly bullish. However, the price has encountered resistance near the 1.618 Fibonacci level, which aligns with an ascending trendline from the last bull market’s double top. This could prove to be a significant hurdle for bulls to overcome.
Additionally, the Stochastic RSI shows a bullish cross as the fast line (blue) moves above the slow line (red), indicating potential upward momentum that could persist for several months. The Relative Strength Index (RSI) is also showing a positive signal, breaking above the descending trendline from 2021, another indication of strengthening bullish sentiment.
Looking Ahead: $100,000 Resistance and Potential for $155,000 Target
While Bitcoin could face another rejection at the $100,000 level in the short term, the longer-term outlook remains promising. Looking toward the first half of 2025, the $155,000 mark, aligned with the 2.618 Fibonacci level, becomes a strong target as the bull market progresses.
Disclaimer: This content is for informational purposes only and does not constitute legal, tax, investment, or financial advice.