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Bitcoin: Why BTC Needs to Hold Above $100K, Explained
As the cryptocurrency market continues to experience a strong upswing, it is imperative for Bitcoin (BTC) to maintain its position above $100K. According to CryptoQuant analyst Crazyyblock, this level serves as a critical psychological barrier that has far-reaching implications for current holders.
In recent times, Bitcoin has witnessed an impressive 8.85% growth, with the asset surging to hit $106K at some point in the past day. However, this upward trajectory was short-lived, and BTC is now trading around $102K after a slight pullback that saw it drop by 2.55%. This decline marked a minor correction before attempting another uptrend.
The recent price action has made it clear that holding above $100K is crucial for the king coin’s market direction. If Bitcoin fails to maintain this level, a significant portion of investors who have been holding their coins within a time frame of 1-3 months might start selling, leading to potential selling pressure and a downward correction.
It’s worth noting that these short-term holders are known to react emotionally to price changes and often engage in short-term strategies. As such, they will be more likely to offload their assets if the asset fails to hold above $100K.
Despite this pullback, Bitcoin remains in a bullish phase as indicated by market conditions at the time of writing. Key metrics like the Taker Buy Sell Ratio remain positive, suggesting that buyers are dominant in the current market landscape.
Moreover, Bitcoin’s RVGI and ADR have started to rise once again, signaling strong upward momentum. This is particularly evident through the rising RVGI, which has managed a bullish crossover within the last four days. Furthermore, the ADR suggests that the cryptocurrency is making more gains than losses.
Given these market conditions, it appears that the recent decline might just be a minor correction before attempting another uptrend. In this scenario, Bitcoin could reclaim $105K and attempt to break above $106K, where it has faced numerous rejections in the past.
However, if the current sentiment were to change and investors become increasingly bearish, we may see BTC drop below $100K and potentially slide down to $98K.
In conclusion, it is essential for Bitcoin’s market trajectory that it holds above the psychological barrier of $100K. Any failure to do so could result in a sharp correction and potential sell-off. As such, investors are advised to keep a close eye on the asset’s price action to gauge its prospects moving forward.
Source: ambcrypto.com
