Here’s Why The Bitcoin Price Continues To Hold Steady Between $96,000 And $98,000

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As a seasoned crypto investor with a decade-long journey in this dynamic digital economy, I find myself closely monitoring the recent fluctuations of Bitcoin. The latest drop below $100,000 psychological level has piqued my interest, especially considering the insights provided by analyst Ali Martinez about the significant support levels between $98,830 and $95,830.

The Bitcoin price has dropped below the $100,000 psychological level and is now holding between the $96,000 and $98,000 range. Crypto analyst Ali Martinez provided insights into why Bitcoin could be holding well within this range. 

Why The Bitcoin Price Is Holding Steady Between $96,000 And $98,000

In an X post, Ali Martinez noted that one of the most important support levels for the Bitcoin price is between $98,830 and $95,830, where 1.09 wallets bought over 1.16 million BTC. This explains why Bitcoin is holding steady between $96,000 and $98,000 as investors who bought between this level continue to provide huge support for the flagship crypto. 

Martinez’s advice underscores the need for Bitcoin holders to maintain their positions, as a surge of sell-offs might cause the price to plummet further than $90,000. The leading cryptocurrency dipped below $100,000 after Jerome Powell, the head of the Federal Reserve, indicated a more aggressive monetary policy stance from the U.S. central bank in his latest speech.

This situation ignited a large scale of sell-offs, as a Fed with a hawkish stance paints a gloomy future for risk assets such as Bitcoin. Nevertheless, even though the price of Bitcoin dropped significantly, the majority of Bitcoin holders are still making a profit – a good sign for the leading cryptocurrency. According to data from IntoTheBlock, 86% of Bitcoin owners find themselves in a profitable position, while 4% are experiencing losses, and 9% are breaking even.

It appears that these Bitcoin owners remain optimistic about the top cryptocurrency, as they persistently add more BTC to their holdings. In a recent post on X, Ali Martinez noted that approximately 74,052 Bitcoins have been taken off exchanges in December so far, and this trend doesn’t show signs of abating.

Traders Anticipate A Bullish Reversal 

Ali Martinez proposes that crypto investors may expect an upturn or bullish reversal in the Bitcoin price from its current point. This is based on his disclosure that traders on Binance had accurately predicted a peak by short-selling Bitcoin when it was worth $108,000, with 62.17% of them doing so. Now, Martinez indicates that the sentiment has shifted, as 55.44% of these traders are now buying dips below $96,000 instead.

Currently, it’s important for the value of Bitcoin to maintain its position above $96,000, as Martinez has cautioned that a drop below this level could cause it to fall further to around $90,000. Looking at Fibonacci levels, if Bitcoin falls below $96,000, the attention shifts towards $90,000 and potentially even $85,000. However, from an optimistic viewpoint, crypto analyst Justin Bennett believes that the price of Bitcoin could still reach $110,000 in the near future.

Currently, the Bitcoin price stands approximately at $97,000. Over the past day, it has experienced a decrease of more than 3%, based on information obtained from CoinMarketCap.

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2024-12-20 18:40