Bitcoin (BTC) appears to be struggling to break above the $100,000 resistance level, but technical indicators point to a possible correction ahead.
Indeed, after Bitcoin hit a new record high of over $99,000, euphoria spread throughout the market. The market had been waiting for the asset to lock in a six-figure valuation, supported by strong fundamentals including sustained buying pressure and post-election optimism.
Currently, Bitcoin is showing a sell signal based on the TD Sequential indicator on the 12-hour chart, and analysis suggests that the asset faces a risk of falling below $90,000. share Written by Ali Martinez, November 23rd.
In this case, the key Fibonacci retracement level indicates a potential downside target at $91,583 or a low of $85,610.
However, not everything is doom and gloom for Bitcoin, as the virgin cryptocurrency has a chance to override this signal. According to the analyst, the bearish signal will weaken if Bitcoin closes above the critical resistance level at $100,535.
Bitcoin bearish outlook emerges
Elsewhere, Scott Melker, host all street wolfhighlighted the increasing likelihood that Bitcoin will fall below the $90,000 mark of X post In November 2024.
He noted that the flagship cryptocurrency is showing signs of a potential local top, with significant bearish divergences forming with an overbought RSI on multiple time frames. Historically, such setups have often preceded price corrections, but there are no indicators that guarantee the outcome.
Melker noted that in the short term, the most likely rebound zone is expected to be around the low $90,000 to high $80,000 range.
“The RSI is overbought for most time frames, with significant bearish divergences. Usually a clear signal, at least at the local top. The most likely pullback is in the low 90s or low 80s.” said.
He advised investors to remember that Bitcoin's all-time high of $74,000 has not yet been tested as support and is worth keeping an eye on for now.
Meanwhile, on-chain indicators suggest that Bitcoin could continue to correct below $100,000. We are seeing increasing signs of spoofing on trading platforms and a large wall of strategically placed sell orders (liquidity demands) to push the market down towards support levels.
This creates bearish sentiment as these walls are often used to manipulate short-term price movements and contribute to the volatility below $100,000.
Amid current market momentum, general sentiment towards Bitcoin remains bullish, reaching the next $100,000 resistance despite uncertainty regarding the asset's next move after this target. I am.
While some are predicting a sharp correction, other analysts argue that Bitcoin will likely target $150,000.
For example, Caleb Franzen, founder of Financial Research Resources, cube analysis, said On November 23, he said the asset could aim for $175,000 by 2025, noting that the current bull market is “on track.”
Meanwhile, technical indicators and historical price movements suggest that the first-ever digital asset could aim for the $135,000 level in December 2024.
Bitcoin price analysis
Bitcoin was trading at $97,390 at the time of writing, down about 1.1% over the past 24 hours. On the weekly chart, BTC is up over 7%.
In conclusion, Bitcoin faces the possibility of a short-term correction, but overall market sentiment remains bullish with a claim to the $100,000 mark. However, technical analysis points to a possible pullback, and bulls should strive to maintain the asset's valuation above the $97,000 resistance.
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