Bitcoin (BTC) Levels Analysis: What Next After a Break Below $98,000?
As Bitcoin price reached long-awaited record highs above $100,000, the market was filled with joy among participants. However, the buying pressure that pushed the price to these highs soon turned into selling pressure, leading the price to drop below $98,000 after a tough resistance from the bears. It seems that the buying volume was unable to compensate for the selling pressure, making a test of the crucial support level a possibility soon.
Trend Reversal: From Bullishness to Correction
It was expected that BTC would see a correction after crossing the $100K mark, especially since most of the holders made profits.
Coinglass data shows that traders have built up large long positions between $100K and $103K, resulting in over $400 million in liquidations, one of the largest in recent months.
This has significantly reduced leverage, paving the way for a healthy rally.
Strong support areas
Currently, the price is trading above the critical demand zone below $97,000. As long as the currency remains within this range, the possibility of a rise towards the upper resistance levels remains strong.
According to the data, over 1.42 million BTC was purchased by 1.45 million addresses between $95,043 and $97,899, making this range one of the strongest current support levels.
Possibility of recovery
Despite the strong selling pressure from bears, Bitcoin remains within an upward range.
If the bulls defend the current support levels, the possibility of a rebound and a return of the price towards the upper resistance remains.
Conclusion
Despite the recent correction, the bullish outlook remains intact thanks to strong support at the $95,000 to $97,900 levels. It is recommended to keep a close eye on these levels, as a price stability above them could push Bitcoin towards new highs in the future.
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