The crypto market is buzzing with excitement as seasoned tokens like XRP, AVAX, LTC, ALGO, and HBAR steal the spotlight again. These altcoins, veterans of the 2021 bull run, are grabbing attention just as Bitcoin (BTC) takes a breather after its latest attempt to crack the coveted $100K milestone. But why the pause in Bitcoin’s rally? A major factor is the sharp decline in trading volume, which has dropped from highs above $150 billion to below $50 billion. This shift has sparked interest in altcoins, momentarily weakening Bitcoin’s momentum as it dipped below $95,000 after failing to maintain $100K.
What’s Next for Bitcoin?
Despite the slowdown, the Fear & Greed Index shows market sentiment still leans greedy, though slightly less euphoric. Bitcoin’s struggles stem partly from long liquidations, with a significant barrier near $98,000 resulting in $500 million in positions wiped out. Currently, BTC is hovering around $95,300, a level with over $130 million in accumulated liquidity.
Looking ahead, $95,657 is a crucial resistance level to watch. Breaking past this could shift the narrative bullish, while a drop to $94,500 might weaken the bulls further. However, the market shows signs of a potential rebound, with BTC poised to bounce back soon.
The Path Forward
Bitcoin’s short-term price action indicates it has exited a rising parallel channel, initially aiming for $100K but met with an 8.38% pullback. Now, the BTC price is testing lower channel support, but this doesn’t necessarily mark the beginning of a bearish trend. A similar dip to $90,000 earlier in the year triggered a strong recovery, and a pullback to $94,500 could do the same, sparking fresh buying activity.
Technical indicators like the stochastic RSI are entering the oversold zone, hinting at a rebound. If buying pressure intensifies, Bitcoin could surge back to $98,000, and a breakout from there might finally clear the path to $100K.
For now, expect Bitcoin to consolidate between $95,500 and $91,500, defending these key levels before potentially reigniting its push toward the milestone that has every crypto enthusiast watching—$100K!
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This is no financial advice. Includes third party opinion.