Bitcoin Price Analysis: Is $100K Within Reach?
After recovering from interim lows near $92,400, Bitcoin’s price has been consolidating below $95,000 for the past few days. These levels have become crucial for determining whether Bitcoin can reclaim the $100K mark soon. While technical indicators don’t point to an immediate rebound, market sentiment remains bullish, suggesting a strong recovery might not be far off.
Short-Term Trends Show Bearish Pressure
In the short term, Bitcoin’s price has been forming lower lows and highs, signaling increased bearish momentum. The price has also broken down from a rising parallel channel, further validating bearish concerns. However, a potential trap for bears may be in play, as accumulation by market participants suggests the possibility of a major trend reversal. Instead of panic selling, investors are seizing the opportunity to accumulate, indicating confidence in Bitcoin’s long-term outlook.
Accumulation Trends Support Bullish Outlook
According to Glassnode data shared by analyst Ali, the accumulation trend score shows strong buying interest among market participants. This trend has been on the rise since the November breakout, even though the recent sell-off triggered some distribution. The accumulation levels remain in the bullish range, making a price rebound seem likely.
Will Bitcoin Reclaim $100K Before the End of 2024?
Despite breaking below the bullish channel, Bitcoin continues to trade within a broader bullish range. Support at $92,100 has held firm for over a month, and with the year coming to a close, bulls are expected to regain control and drive prices upward.
The chart highlights Bitcoin breaking the rising parallel channel, raising concerns about bearish momentum. However, buying volumes remain steady, keeping the price within a restrictive range. The Directional Movement Index (DMI) shows signs of a potential bearish crossover, with the ADX indicating weakening trends.
Similarly, the On-Balance Volume (OBV) has been in a steady downward trend, hinting at a gradual shift from bullish to bearish sentiment. For now, Bitcoin appears to be testing support near $92,000. A rebound from this level could set the stage for reclaiming $100K, but a dip below $90,000 may trigger further declines.
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This is no financial advice. Includes third party opinion.