Bitcoin continues to demonstrate resilience above the psychological $100,000 mark, currently trading at $103,700 despite recent market turbulence. Recent on-chain analysis suggests the broader rally may not be over, with key indicators pointing to potential upside ahead.
Long-Term Bitcoin Indicators Signal Strength
According to renowned crypto analyst Willy Woo, the Bitcoin Risk Signal – one of the most reliable long-term indicators – is showing encouraging signs. The metric’s downward trend suggests growing buy-side liquidity, potentially setting up Bitcoin for another leg higher.
Key long-term bullish factors include:
- Declining risk readings indicating a favorable accumulation environment
- Strong buy-side liquidity dominance
- Price holding firmly above six figures
- Local risk model in mid-range with room for growth
Short-Term Caution Signs Emerge
While the long-term outlook remains positive, several short-term metrics warrant attention:
- SOPR (Spent Output Profit Ratio) showing signs of weakness
- Flat capital inflows over the past 72 hours
- Rally momentum from $75,000 to $112,000 losing steam
- Critical support test at $100,000 level
Key Price Levels to Watch
Traders should monitor these crucial price points:
- Immediate resistance: $114,000
- Major liquidity zone: $118,000-$120,000
- Critical support: $100,000
- Current trading range: $103,000-$105,000
Expert Analysis and Market Outlook
The market stands at a critical juncture, with two possible scenarios emerging:
Bullish Case:
- Strong buying pressure could trigger a break above $114,000
- Short position liquidations could accelerate upward momentum
- Target zone between $118,000-$120,000
Bearish Case:
- Weak spot buying could lead to consolidation
- Risk of bearish divergence formation
- Potential retest of lower support levels
Frequently Asked Questions
What is causing Bitcoin’s current price action?
The current price action is influenced by a combination of long-term accumulation patterns and short-term profit-taking, with institutional flows playing a significant role.
Will Bitcoin break above $120,000?
While long-term indicators suggest potential for higher prices, immediate momentum will depend on spot buying pressure and institutional participation in the coming weeks.
What are the key support levels to watch?
The primary support zone lies at $100,000, with secondary support at $103,000. These levels are crucial for maintaining bullish momentum.
At time of writing, Bitcoin trades at $103,700, showing a 1.5% decline over 24 hours and a 3.9% drop over the past week.
