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The latest analysis indicates that Bitcoin may be poised for a significant upward movement, potentially reaching unprecedented highs if it maintains critical support.
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This bullish sentiment is bolstered by recent market trends showing Bitcoin eclipsing key psychological price levels, marking a potential shift in momentum.
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According to Trader Rekt Capital, “Bitcoin needs a weekly close above $97,000 to continue holding the higher low as support,” which underscores the importance of this critical threshold.
Bitcoin’s price action suggests the potential for a rally to new all-time highs, contingent upon maintaining support above $97,000, with technical insights indicating key levels to monitor.
Why Bitcoin price must hold above $97,000
Bitcoin price is currently experiencing a bullish trend, with the asset trading in a third consecutive bullish session, having climbed 6% from its recent low of $95,000 on February 18, according to data from reputable sources such as Cointelegraph Markets Pro and TradingView. This upward movement has propelled BTC above the crucial threshold of $97,000, a level that traders deem essential for sustaining the ongoing recovery.
Rekt Capital, a noted trader and analyst, stressed the significance of this support level, stating, “Bitcoin needs a weekly close above $97,000 to continue holding the higher low as support.” This insight highlights the precarious nature of the current price action.
As per the accompanying technical chart, Bitcoin is currently resting on immediate support at approximately $97,028, which aligns with the lower boundary of a pennant formation. This setup has seen Bitcoin experiencing downside-wicks below the triangular market structure while maintaining the pattern intact for the past three weeks.
The critical nature of this price structure indicates that a failure to hold above $97,000 could lead to a significant pullback, undermining recent gains and potentially setting back bullish sentiment within the market.
Assessing Market Sentiment Around $98,000
Alongside the critical support levels, market sentiment is also shifting as Bitcoin trades above $98,000 for the first time since February 4. Trader Warren Muppet has observed that if Bitcoin manages to close above this level, it could catalyze a potential rally towards new all-time highs. Muppet stated, “If tomorrow we will reject {the $98,000 level} is a strong short signal, but if tomorrow we will confirm the close above, I should assume an attack to the ATH.”
This statement encapsulates the dual nature of trading sentiment with regards to BTC’s price action, where closing above certain thresholds could signal further bullish momentum, while failure to do so may result in immediate sell-offs.
BTC trades above a key support level
One of the critical analyses affecting Bitcoin’s price dynamics revolves around its realized price distribution (URPD). Understanding the URPD assists traders in identifying where the current unspent transaction outputs (UTXOs) were generated, shedding light on significant support and resistance zones.
Data from Glassnode indicates that Bitcoin’s key support levels are currently situated at $97,500 and $96,450. Maintaining trading above these levels is paramount for sustaining upward momentum.
Moreover, recent liquidation data from CoinGlass has further illuminated the immediate resistance that exists above the $98,000 threshold. The accompanying liquidation heatmap illustrates a substantial wall of bid liquidity within this price zone, suggesting that Bitcoin could gravitate towards these levels, establishing a pathway towards the critical psychological milestone of $100,000, which is often deemed a pivotal point for bullish sentiment.
Conclusion
In conclusion, the ongoing performance of Bitcoin hinges significantly on its ability to hold above the $97,000 mark, with traders closely monitoring this level for signs of further upward momentum. The analyses from experts highlight a critical juncture where either a sustained increase or a rejection may determine Bitcoin’s trajectory in the near term. Traders and investors alike should remain vigilant as the crypto market continues to evolve, ensuring that they remain informed about the latest trends and insights.
