Approaching $100K Bitcoin: Could Sell Pressure Impede Progress?
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Key Points
- Bitcoin (BTC) is nearing the $100K mark, but resistance is strong at $98.9K.
- Significant buying pressure on BTC could lead to a continued price uptrend.
Bitcoin (BTC) is gradually moving towards the significant $100K mark, an outcome of the current bullish market conditions. However, the sustainability of this upward trend is in question, with potential for a price correction on the horizon.
Bitcoin’s Ascent to $100K
Within a week of substantial price increases, the value of BTC has been inching closer to the $100K mark. Currently, the cryptocurrency is trading at $98.2K with a market capitalization of $1.94 trillion.
Ali Martinez, a well-known crypto analyst, suggested that investors should consider selling 25% of their BTC holdings once the currency reaches the $173K-$200K range. He also recommended selling an additional 30% of holdings if BTC enters the $200K-$300K range.
Forecasting BTC’s Trajectory
According to Glassnode’s data, BTC is trading well within its range. The Pi Cycle Top indicator suggests that BTC’s potential market top is at $121K, while its market bottom is at $66K. Therefore, BTC’s move towards $100K is not overly ambitious.
Investors continue to show interest in buying Bitcoin. It was reported that 65K BTC, valued at over $6 billion, were recently withdrawn from exchanges, indicating a significant increase in BTC’s buying pressure.
CryptoQuant’s data shows that the buying pressure remains high, as evidenced by BTC’s decreasing exchange reserve. This decrease suggests a high likelihood of a continued price uptrend, as investors maintain confidence in BTC.
Bitcoin’s Coinbase Premium is also in the green, indicating dominant buying sentiment among U.S. investors, which could further support BTC’s climb towards $100K. However, certainty in these predictions is not absolute.
BTC’s liquidation heatmap indicates strong resistance at $98.9K. Increased liquidation often acts as a barrier, potentially leading to rejection and price correction. Therefore, it is critical for BTC to surpass this level to reach the $100K target.
Bitcoin’s Chaikin Money Flow (CMF), a measure of buying and selling pressure, shows an increase, supporting the argument of high buying pressure. However, the Money Flow Index (MFI) is currently in the overbought zone, which could prompt a sell-off and subsequently push BTC’s price down.
