Bitcoin has faced a volatile week, with sharp moves above and below the pivotal $100,000 mark, but the price still struggles to close and hold above this psychological level. The lack of a clear direction has divided investors, with some anticipating a breakout into uncharted territory while others brace for a potential correction.
CryptoQuant analyst Axel Adler shared key data shedding light on Bitcoin’s current dynamics. According to Adler, the nearest support level is $94,500, representing the average purchase price for short-term holders (STH) holding coins for one week to one month. This metric underscores the importance of this level as a critical threshold for maintaining market confidence.
As Bitcoin grapples with resistance at $100K, the $94.5K support will be crucial in shaping the next phase of price action. A successful defense of this level could reignite bullish momentum, while a breakdown might trigger a deeper retrace.
With the broader market still indecisive, Bitcoin’s movements in the coming days will be closely watched by traders and investors seeking clarity in an uncertain environment. The battle for $100K continues, and all eyes are on whether Bitcoin can finally claim this level as solid ground.
Bitcoin Demand Remains Strong
Despite significant selling pressure and choppy price action, Bitcoin demand remains robust, keeping the price above crucial demand zones. Investors appear to be holding their ground, contributing to a period of consolidation as they prepare for Bitcoin’s next major move. The current sideways trend reflects market indecision, yet it underscores the resilience of Bitcoin’s price in the face of volatility.
Axel Adler, a prominent CryptoQuant analyst, recently shared critical insights into Bitcoin’s support levels on X. According to Adler, the nearest support level is $94,500, which represents the average purchase price for short-term holders (STH) holding coins for one week to one month. This level has become a key threshold, providing strong demand and acting as a safety net for BTC during periods of downward pressure.
Further analysis reveals that $80,800 marks the average purchase price for the broader STH cohort. This level is pivotal as it represents a deeper liquidity zone that could come into play in a more significant correction. These data points suggest that $94.5K and $80.8K will be critical to monitor in the coming days and weeks.
As Bitcoin consolidates, the market anticipates whether these key support levels will hold or demand will drive BTC into its next bullish phase. The stakes are high, and investors are closely monitoring these liquidity zones.
BTC Finding Fuel Below $100K
Bitcoin is trading at $98,000 after failing to sustain a breakout above the critical $100,000 level over the past week. Despite this, the price remains resilient, with bulls finding momentum to push BTC closer to reclaiming this psychological threshold. The market watches closely as Bitcoin consolidates, signaling preparation for its next significant move.
Key resistance lies at $101,200, which analysts view as pivotal for triggering the next leg up. If Bitcoin successfully reclaims and holds above this zone, it could pave the way for a strong bullish surge, driving the price into uncharted territory. Such a move would likely attract renewed interest and capital, solidifying the current rally.
However, the downside risk remains a concern. Should Bitcoin fail to break above $101,200 and lose the $94,500 support level—identified as a critical threshold by analysts—investors could see a correction phase unfold. This scenario would likely target deeper liquidity zones, such as $80,800, as potential support areas.
Bitcoin’s ability to hold its ground and reclaim key levels will determine its direction in the coming days. Traders closely monitor price action for signs of strength or weakness amid growing market anticipation.
Featured image from Dall-E, chart from TradingView
Source: NewsBTC.com
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