Bitcoin’s Price Recovery: Will It Break the $100,000 Barrier?
Bitcoin has been on a rollercoaster ride lately, and its price recovery from the recent slump has left many investors wondering what’s next. After hitting a monthly low, the cryptocurrency has managed to bounce back, but it’s still struggling to reach the coveted six-digit territory. With the weekly close just around the corner, let’s take a closer look at the potential risks and opportunities facing Bitcoin.
The Road to Recovery
The past couple of weeks have been tough for Bitcoin, with its price plummeting from an all-time high of over $108,000 to a low of $91,300. However, the cryptocurrency has shown resilience, and its price has since increased by 7.5% to above $98,000. On a weekly scale, Bitcoin is up by 3.5% compared to its valuation last Sunday.
The Stiff Supply Wall: A Major Hurdle
One of the biggest factors holding Bitcoin back from breaking the $100,000 barrier is the “stiff supply wall” that has formed between $98,000 and $100,000. This means that many investors have accumulated their Bitcoin holdings at these levels, creating a critical resistance line. According to analyst Ali Martinez, this supply wall is currently acting as a major hurdle for Bitcoin’s price recovery.
A Bullish Development: Reduced Sell Pressure
On the positive side, Martinez has highlighted a highly bullish development for Bitcoin. Over 48,000 Bitcoins (valued at $4.7 billion at today’s prices) have been withdrawn from exchanges, reducing the immediate sell pressure. This could be a sign that investors are becoming more confident in Bitcoin’s long-term prospects.
What’s Next for Bitcoin?
Martinez believes that Bitcoin might retest the 50-day moving average, which is currently at just under $97,000. Although Bitcoin is currently above this level, it needs to close there to signal the end of the correction and confirm bullish momentum. However, the analyst also warns that Bitcoin could be forming a head-and-shoulders pattern that might lead to a more violent decline to $78,000.
The Verdict: Cautiously Bullish
Martinez remains “cautiously bullish” about Bitcoin’s prospects, but emphasizes that a strong close above $100,000 is crucial to invalidate the bearish setup. With the weekly close just hours away, all eyes are on Bitcoin to see if it can break the $100,000 barrier and continue its upward momentum.
What do you think? Will Bitcoin break the $100,000 barrier, or will it face another correction? Share your thoughts in the comments below!
Source: Cryptopotato.com
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