Bitcoin Price Analysis: Will BTC Break $98,000 or Drop Below $93,000?
Bitcoin has been on a rollercoaster ride lately, with the price surging to new all-time highs above $109,000 before experiencing a sharp decline. This has left many wondering whether the cryptocurrency will continue its bullish momentum or if a bear market is on the horizon.
Despite the recent volatility, the overall market sentiment remains bullish, with chart patterns suggesting that Bitcoin is still under the influence of bullish forces. The question now is whether the price will break above $98,000 or fall below $93,000 in the near future.
The supply and demand dynamics have played a significant role in shaping Bitcoin’s price movements and market sentiment. As the price has remained within a tight range for an extended period, a mounting supply wall on either side is expected to impact future price action.
According to data from Intotheblock, Bitcoin is currently facing a supply wall of 1.88 million BTC at $97,000, while support at $94,500 is backed by just 695,000 BTC. This imbalance between buyers and sellers suggests that the support may not be strong enough to hold, potentially leading to a break below the current range.
Will Bitcoin Price Drop Below $94,000 This Week?
The recent drop in Bitcoin price volatility has kept the cryptocurrency within a narrow trading range. Weakness in the US market compared to Europe and Asia has led to retracements, causing Bitcoin to struggle to break out of its current range.
Bitcoin is currently trading within a parallel channel, struggling to break above average bands. While a bearish target below $92,000 is in play, there is a possibility of a bullish rebound as the Bull Market Support Band prepares for a bullish crossover. The RSI indicator is also holding above support, indicating a potential bounce back.
If the Bull Market Support Band undergoes a bullish crossover, Bitcoin will need to break above the local resistance at $98,000 to continue its upward momentum. Failure to do so could result in a rejection and a drop back into the current range.