Bitcoin continues to struggle against the psychological milestone of $100,000, failing to break above this critical resistance after a return to record highs. This prolonged stagnation has led to discussions about a possible correction or a deeper pullback as the market awaits confirmation of Bitcoin’s next big move. Analysts and investors alike are watching the situation closely and are eager to know whether the cryptocurrency will soar to new heights or succumb to selling pressure.
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To further fuel these concerns, renowned analyst Maartunn recently highlighted the alarming activities in the chain. More than 8,000 BTC, between five and seven years old, have moved on-chain, raising questions about the long-term intentions of holders. Historically, such moves have often preceded market shifts, with increased selling pressure signaling potential weakness.
The activity of these veteran wallets could reflect declining confidence or profit-taking, keeping Bitcoin below the $100,000 threshold. As bulls and bears remain locked in a battle for dominance, this key metric underscores the growing uncertainty. With Bitcoin’s trajectory hanging in the balance, market participants are bracing for clarity on whether this crucial level will ultimately turn into solid support – or mark the start of a downward correction.
Smart money moving Bitcoin
Since early December, Bitcoin has entered a prolonged consolidation phase, struggling to establish clear momentum in either direction. Recent data from the chain suggests that whale activity plays a crucial role in suppressing the price. According to top analyst Maartunna well-known entity – an old Bitcoin whale – has resurfaced and made significant moves that could influence the trajectory of the market.
Maartunn emphasizes that the move of over 8,000 BTC reflects a pattern seen just 10 days ago. At that point, the same whale has reportedly moved a total of over 72,000 BTC since the start of the consolidation phase. Often referred to as “smart money,” this whale is active as never before, signaling strategic positioning rather than impulsive selling.
The consequences of this activity are profound. As long as this whale continues to sell BTC, the selling pressure could keep Bitcoin below key psychological levels, extending the current consolidation period for a few more weeks. However, this accumulation and redistribution phase could set the stage for a huge rally once activity subsides.
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Analysts interpret this as a period of preparation by seasoned market participants, suggesting that when the dust settles, Bitcoin could experience a powerful upside breakout.
BTC above key demand level
Bitcoin is currently trading at $95,000 after managing to stay above the critical support level at $92,000. Despite maintaining control of the market in recent weeks, the bears have been unable to break the key demand zones of $92,000 and $90,000. These levels have acted as a strong foundation, preventing further downturns and signaling resilience among buyers.
If Bitcoin continues to defend these crucial levels, it could pave the way for a quick challenge to its all-time high (ATH). A position above $92,000 would reinforce bullish sentiment and attract renewed interest from traders and institutional investors eyeing the psychological milestone of $100,000.
However, the path ahead is far from guaranteed. A failed attempt to recover $100,000 could signal exhaustion among buyers, potentially triggering a deeper correction. In such a scenario, Bitcoin could revisit the lower support zones as market participants reassess their strategies.
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The coming weeks will be crucial for Bitcoin’s trajectory. Whether it reaches new heights or faces a significant setback will depend on its ability to hold key levels and overcome the psychological barriers that have kept it below $100,000. Investors are watching closely and anticipating Bitcoin’s next decisive move.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
