The price momentum of Bitcoin is weakening, struggling to maintain the strong upward momentum built in recent weeks. With the current price at $98,436, the king of cryptocurrencies is still hovering below the important resistance level of $100,000.
This stagnation, along with investor liquidation, has raised concerns about the risk of BTC plummeting.
Bitcoin investors are uncertain
The Liveliness index of Bitcoin continues to rise despite the recent price reaching a stable level. This indicates that long-term holders (LTH) are liquidating their positions. LTH, often considered the stable backbone of Bitcoin, are offloading assets to minimize potential losses due to concerns about further price decline.
If this trend continues, the liquidation activity of long-term holders (LTH) could exacerbate bearish pressure. Since LTH are crucial for maintaining confidence in Bitcoin's value, their exit from the market suggests a lack of faith in sustainable bullish recovery. Such a shift in sentiment could accelerate BTC's downward trajectory.
Bitcoin Liveliness Index | Source: Glassnode
The macro momentum of Bitcoin also reflects a bearish trend. The Relative Strength Index (RSI) has dropped lower, struggling to stay above the neutral level of 50. The weakening performance of this technical indicator suggests that bullish strength is fading in recent trading sessions.
A declining RSI signals that Bitcoin is at risk of losing upward momentum. If this trend continues, it could further dampen market optimism and push prices lower. Traders and investors are closely monitoring the RSI for signs of potential reversal or continued decline.
Bitcoin RSI | Source: TradingView
Bitcoin Price Prediction: Breaking Through Major Resistance
Bitcoin is currently trading at $98,436, just a little shy of the crucial resistance level of $100,000 for further growth. Turning this level into support is essential for BTC to maintain an upward trajectory and reach new heights. However, it has yet to find the necessary buying pressure to achieve this.
On the downside, the aforementioned bearish factors suggest that Bitcoin could fall to $95,668. If this critical support level is broken, the price could continue to decline further, with $89,800 as the next target. This scenario would mark a significant setback for BTC investors.
BTC Price Chart | Source: TradingView
On the contrary, if Bitcoin regains the $100,000 support level, it will rise to $105,000. Achieving this milestone would solidify its position and pave the way for a potential return to the all-time high (ATH) of $108,384. For such a recovery, the market needs to demonstrate renewed confidence and strong buying activity.
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