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Bitcoin (BTC) is at a critical juncture after reaching an all-time high of $115,166. The cryptocurrency’s recent surge has caught the attention of numerous market observers who are now warning about a potential short-term risk zone near the $105,000 level. This crucial threshold aligns with various on-chain metrics that could pose a significant obstacle to the BTC/USD pair.
The ominous signals are derived from a cluster of Unspent Transaction Output (UTxO) data and short-term holder cost bases. These factors indicate a heightened possibility of an involuntary correction or even a moderate downturn, should market sentiment turn bearish. As it stands, investors have been flocking to Bitcoin due to the lack of a stable alternative investment option.
The $105,000 zone marks the convergence point for a plethora of essential realized price metrics. The level has garnered significant attention from crypto analysts and experts as they caution that this area may become a trap for over-leveraged traders. A descent into this region could lead to forced liquidations in the short futures market, amplifying price volatility.
Matrixport, a prominent crypto financial services platform, concurs with these findings, pinpointing the $105,000 mark as a critical technical level tied to the 21-week moving average (MA). They urge investors not to grow complacent despite the recent impressive performance of Bitcoin. The company warns that a breach below this threshold could be indicative of a more profound shift in market sentiment.
Despite these warnings, the long-term outlook for Bitcoin remains constructive. Analysts stress the importance of prudence and exposure management amid the current market environment. As Bitcoin’s price approaches this critical juncture, investors are advised to reassess their risk profiles, taking into account the potential pitfalls at $105,000.
Source: www.tronweekly.com
