Bitcoin continues to consolidate around $96,500, marking five days of sideways trading. The cryptocurrency faces a crucial test at the $97K level, which represents the average entry price for short-term holders.
Market Sentiment and Key Support Levels
The crypto market shows signs of indecision. Bulls struggle to reclaim $100K. Bears fail to push prices lower. This creates a stalemate in price action.
Crypto analyst Axel Adler highlights the significance of the $97K support. This price point matters because it represents the average purchase price for 1-3 month holders. Their behavior could influence near-term price movement.
Technical Analysis and Price Outlook
Bitcoin trades within a defined range:
- Resistance: $100,000 (psychological level)
- Support: $97,000 (short-term holder cost basis)
- Secondary Support: $94,500 (recent low)
A break above $100K could trigger a rally toward the all-time high of $109K. However, losing the $97K support might lead to a test of $90K levels.
Market Implications
Short-term holder behavior suggests strong conviction at current levels. Their willingness to hold through consolidation indicates potential upside. However, the market needs a catalyst to break the current range.
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The current consolidation phase tests trader patience. Yet it also builds a strong foundation for the next move. Market participants should watch the $97K level closely.
Tags: Bitcoin, Market Analysis, Technical Analysis, Cryptocurrency Trading, Price Action
Source: NewsBTC