Bitcoin has had a whirlwind few days, hitting an all-time high (ATH) last Tuesday before falling into a sharp 15% correction. This period of volatility has left investors divided, with some expecting continued upside and others looking for further declines. The market is closely watching Bitcoin’s ability to regain its bullish momentum.
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Senior analyst Ali Martinez has highlighted important data from Bitcoin’s cost base distribution, pointing to $97K as a key support level. Martinez insists that holding this level is important for BTC to maintain its uptrend and defend a deeper correction. However, Bitcoin price action remains uncertain as it tries to break through the psychological barrier at $100K.
While many investors see the recent correction as a healthy reset after BTC’s meteoric rise, a failure to push higher could indicate a long-term consolidation phase. With Bitcoin trading near key levels, the coming days will be crucial in determining whether it will resume its climb to new heights or face further headwinds.
Bitcoin Holdings Above Critical Demand
Bitcoin is holding above the key needed level around $97,000, offering a glimmer of hope for the bulls after recent volatility. This stability follows a brief test of low demand at $92,000, which strengthened the market’s ability to absorb selling pressure. Although the temporary recovery is encouraging, the price remains at a critical level that could determine its trajectory heading into the new year.
Martinez recently shared details from the spread of Bitcoin’s cost base, emphasizing the importance of the $99,000–$97,000 range. His data highlights this area as the most important support level for Bitcoin, which serves as an important line in the sand for the current uptrend.
However, Martinez warns of the potential risk if Bitcoin fails to hold this level: “We really don’t want this level to contradict itself.”
As Bitcoin rallies closer to these key levels, sentiment across the market remains uncertain. Bulls are eager to see BTC gain momentum and push higher, but psychological resistance around $100,000 continues to loom large. Meanwhile, bears argue that the recent pullback could be a sign of a larger correction to come.
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The coming days will be important as the year draws to a close. With market participants looking for clarity, Bitcoin must hold this key support area or risk losing its bullish structure. Whether the next big move is up or down will largely depend on how BTC reacts within this price range.
BTC Test Liquidity
Bitcoin is trading at $97,000, showing firmness after rebounding from the lows of the $92,000 area. This jump highlights the market’s strong demand at lower levels, reinforcing the current bullish narrative. The price structure remains intact above $97,000, indicating that BTC is in a good position to stage another rally towards its ATH.
However, the $100,000 mental barrier looms large as the bulls’ next big hurdle. This level has proved difficult to overcome, with previous attempts falling short. A break above $100,000 in the coming days could rein in the bullish momentum and set the stage for Bitcoin to reach new ATHs, restoring confidence among investors and traders.
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On the other hand, failure to break this critical resistance may initiate a less favorable situation. If Bitcoin struggles to gain strength above $100,000, market sentiment may waver, leading to increased selling pressure. In such a scenario, BTC may face further declines, retesting key support levels.
Featured image from Dall-E, chart from TradingView