Bitcoin May Reach $110,000 if It Breaks Key $98,000 Resistance, Analysts Suggest

• Bitcoin’s recent trading patterns suggest a pivotal moment, where a breakthrough above $98,000 could propel it towards $110,000 and beyond.

• Investors are closely watching the market dynamics, as sustained buyer demand is crucial to push Bitcoin past this critical resistance level.

• According to crypto analyst Michaël van de Poppe, “Bitcoin still patiently waiting to break $98,000 to get ourselves into the magic wonderland of $100,000+,” emphasizing the importance of overcoming this barrier for future growth.

Bitcoin eyes a crucial resistance level of $98,000, with potential to soar to $110,000 if buyer demand increases; expert insights abound.

Bitcoin needs to breach $98,000 to claim $100,000 new high

The crypto community is abuzz with anticipation as analysts believe that Bitcoin’s journey to a six-figure price could soon be a reality. The key resistance level at $98,000 is seen as the gateway to new price territories. As Bitcoin makes headway, its correlation with external liquidity factors presents a compelling narrative. With predictions pointing toward a potential local peak of $110,000 in January 2025, it’s essential to consider how central bank policies impact broader market conditions, particularly given the rising liquidity concerns.

Chart Patterns Indicate Potential for Major Upswing

Technical analyses reveal that Bitcoin could experience substantial upward momentum by breaking past the $98,000 mark. The pseudonymous analyst DonAlt notes, “Probably giga sends on a close above $98k towards $110k,” reflecting the bullish sentiment sweeping through the market. Such breakout scenarios highlight the importance of market psychology and the role of short-term trading behaviors in price movements. Despite this optimism, analysts warn of volatility, indicating that a dip to $80,000 could occur if critical support levels falter.

Bullish signal: Short-term holders stop selling Bitcoin

Another significant development is the trend of short-term holders (STHs) ceasing their selling activities. This behavior is viewed as a bullish indicator, suggesting a potential shift in market sentiment. Historically, STH profit-taking has contributed to downward pressure on Bitcoin prices, which was evident during its failed attempt to surpass $100,000 last month. As Sina G describes, the spike in STH profit-taking contributed to the recent rejections at this resistance level. With the current halt in selling, analysts suggest that the stage may be set for a healthier price appreciation.

Investment Trends and Future Outlook

Looking ahead, Bitcoin stands to gain from a projected influx of $2 trillion in new investments by 2025. This capital is poised to enhance the already substantial money supply, as the U.S. Federal Reserve grapples with rising liquidity needs. The macroeconomic environment appears favorable for cryptocurrencies, particularly if Bitcoin can leverage its status as a store of value amidst conventional liquidity concerns.

Conclusion

In summary, Bitcoin finds itself at a crucial juncture, with the resistance of $98,000 as a fundamental barrier. The insights from analysts underscore the importance of market psychology and liquidity trends. As short-term sellers withdraw from the market, Bitcoin’s potential for a sustained upward trajectory becomes clearer. Investors and enthusiasts alike will be keenly watching how these dynamics unfold, heralding what could be a transformative period for Bitcoin.