- Summary:
- The $100k mark has remained elusive for Bitcoin price, and its on-chain metrics signal a weakening momentum. What are the odds?
Bitcoin price came within touching distance of the much-awaited $100k milestone last week, but dropped significantly heading into the weekend. However, the crypto coin returned to the upside on Monday, gaining 0.4 percent to trade at 98,442 at the time of writing.
The sudden decline in Bitcoin’s upward push is attributed to an element of Fear Uncertainty and Doubt (FUD) sentiment on what could become of the coin once it hits the milestone mark. Data aggregation site, IntoTheBlock, reports that 98 percent of BTC holders are currently profit.
Therefore the incentive to sell is an existential risk for Bitcoin price in the near-term. In addition, the number of whale transactions (transactions whose value exceeds $100k) has declined significantly in the last week, going down from 11,812 to 9,585.
Also, the exchange netflows have risen substantially from -$3.8 billion to -$49.9 million in the last five sessions. That is a strong sign that more investors are readying to trade their assets, and it increases the supply-side pressure on Bitcoin price. That said, the $98k level has been the support level for Bitcoin in the last four sessions. Therefore, its stability above that mark augurs well for the upside momentum.
Importantly, the fundamental market sentiment remains in play, as investors look ahead to positive pronouncement from the incoming Trump administration. That could ultimately make the difference, despite the recent weakness in on-chain data.
Bitcoin price key levels
The momentum on Bitcoin price favours the continuation of the upside if action stays above the pivot mark at 98,120. With that, the price is likely to move further up to 98,590, where it could meet the first resistance. Extended control by the buyers will break above that level and could send BTC higher to test 98,830.
Conversely, moving below 98,120 will favour the downside to prevail. If that happens, the price is likely to find initial support at 97,920. A stronger downward momentum will move the price below that level and invalidate the upside thesis. That could see the price move lower to test the second support at 97,720.
