The Bitcoin Price Holds Steady Between $96,000 And $98,000
The price of Bitcoin has recently dropped below the $100,000 psychological level and is currently fluctuating between the $96,000 and $98,000 range. Renowned crypto analyst Ali Martinez has shed light on why Bitcoin seems to be maintaining stability within this particular range.
In a recent analysis, Martinez highlighted a significant support level for Bitcoin between $98,830 and $95,830, where a substantial number of wallets purchased over 1.16 million BTC. This influx of support from investors who bought in this range explains why Bitcoin is holding firm between $96,000 and $98,000 despite recent market fluctuations.
Bitcoin Holders Remain Bullish
It is crucial for these holders to continue holding their positions to prevent a potential wave of sell-offs that could drive the Bitcoin price below $90,000. Following Federal Reserve Chair Jerome Powell’s hawkish remarks, Bitcoin experienced a dip below $100,000, triggering a series of sell-offs in the market. However, the majority of Bitcoin holders remain profitable, with 86% currently in the money according to IntoTheBlock data.
Despite the recent price drop, Bitcoin holders continue to exhibit a bullish sentiment by accumulating more BTC. In December alone, 74,052 BTC were withdrawn from exchanges, indicating ongoing confidence in the leading cryptocurrency.
Traders Anticipate A Bullish Reversal
Ali Martinez pointed out that crypto traders are anticipating a bullish reversal for Bitcoin from its current price level. Initially, a large percentage of traders on Binance were shorting Bitcoin at $108,000, but sentiment has now shifted, with 55.44% of traders longing dips below $96,000.
It is essential for Bitcoin to maintain the $96,000 support level, as failing to do so could result in a further drop towards $90,000. While some analysts predict a potential drop to $85,000, others like Justin Bennett remain optimistic about a $110,000 target for the Bitcoin price.
As of the latest data from CoinMarketCap, Bitcoin is currently trading around $97,000, reflecting a 3% decrease in the past 24 hours.
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