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Bitcoin Below $100K: Key Factors Holding BTC Back and Potential Risks
The cryptocurrency market has been witnessing a rollercoaster ride in recent times. The price of Bitcoin (BTC) is struggling to break above the $100,000 mark, despite various attempts throughout 2024. While this trend may have left many investors disappointed, it’s essential for us to examine the key factors holding BTC back and explore potential risks that might arise if the cryptocurrency remains below this critical level.
Firstly, it is crucial to acknowledge that Bitcoin has been facing a stiff supply wall in the range of $98,000 to $100,000. According to renowned analyst Ali Martinez, this means that a significant portion of investors have accumulated their holdings at these levels, effectively turning them into resistance lines. This could be one major reason why the cryptocurrency is struggling to break above.
On the brighter side, Martinez highlights an encouraging development from late 2024. As the year drew to a close, more than 48,000 BTC (valued at over $4.7 billion) were withdrawn from exchanges, significantly reducing the immediate sell pressure. This could be the catalyst that propels BTC back towards its desired level.
However, Martinez advises caution by emphasizing the possibility of Bitcoin forming a head-and-shoulders pattern, which may potentially lead to an even more pronounced decline to $78,000. As such, it’s essential for investors to see a strong close above the $100,000 mark to invalidate this bearish setup and confirm bullish momentum.
As we navigate these uncertain times, it is crucial to stay informed about market trends and potential risks. By examining key factors influencing BTC’s trajectory and being aware of possible pitfalls, we can make more informed investment decisions and potentially avoid significant losses.
Disclaimer: The information presented on CryptoPotato is the opinion of writers quoted. It does not represent the views of CryptoPotato regarding whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions.
Source: cryptopotato.com
