Bitcoin (BTC) has been on a strong bullish run lately, but there’s a warning on the horizon for traders. A popular crypto analyst is predicting that Bitcoin could face a significant correction unless it breaks through a key resistance level of $100,000. So, what does this mean for Bitcoin’s price, and where could it go next?
What’s Happening with Bitcoin’s Price?
As of November 2024, Bitcoin has been trading between $97,000 and $97,500. However, Bitcoin is approaching a major resistance level at $100,000, which could determine the next move for the cryptocurrency. If Bitcoin manages to break and stay above this level, it could keep climbing. But if it fails, a correction could be in the cards.
Analyst’s Bearish Warning: A Drop to $85,600?
An analyst named Ali, who is known for his insights on social media platform X, recently pointed out a potential bearish pattern on Bitcoin’s chart. Using a tool called the TD Sequential indicator, he suggested that Bitcoin could dip to $91,583, or even go lower to $85,610 if the sell signal plays out.
Ali believes that if Bitcoin closes above $100,535, the bearish signal would be canceled, and the price could continue to rise. This means the $100,000 level is crucial for determining Bitcoin’s near-term direction.
Why Is $100,000 So Important?
The $100,000 level is not just a psychological barrier; it’s a major point of resistance. Bitcoin has been trying to break through this level for a while, and failing to do so could lead to a drop in price. On the other hand, if Bitcoin surpasses $100,000, it could trigger more buying and continue its long-term upward trend.
What Are the Support Levels to Watch?
If Bitcoin faces a correction, analysts are looking at possible support levels where the price could stabilize. These levels are around $95,000 and $93,000. If these support levels hold, Bitcoin might recover and continue its bullish momentum. However, if the price drops further, Ali’s prediction of a low of $85,610 could become a reality.
What Should Traders Do?
With Bitcoin at a crucial price point, traders need to be cautious. While the long-term trend for Bitcoin remains bullish, short-term volatility could lead to a pullback. Traders are keeping a close eye on volume and resistance levels to decide whether the next move will favor buyers or sellers.
The Bottom Line
Bitcoin’s rally is at a crossroads. The key question is whether it can break through the $100,000 barrier and continue its rise or if it will face a correction. Analysts suggest that a decisive move above $100,000 could spark fresh buying, while a failure to break this level could lead to a retracement toward $91,583 or even lower. As always, caution is advised, and traders should monitor these key levels closely.
What is the $100,000 resistance level for Bitcoin?
The $100,000 resistance level is a significant price point where Bitcoin has struggled to break above. If Bitcoin cannot surpass this level, it may experience a price correction.
What does the TD Sequential indicator show?
The TD Sequential indicator is a technical analysis tool that helps predict potential price reversals. It is currently signaling a bearish correction for Bitcoin unless the price breaks the $100,000 resistance.
Could Bitcoin drop to $85,600?
Analysts have warned that Bitcoin could drop to $91,583 or even $85,610 if the bearish trend continues. However, this would depend on how Bitcoin reacts to the $100,000 resistance.
Why is $100,000 so important for Bitcoin’s price?
The $100,000 level is a psychological resistance for Bitcoin, and it could determine whether the current bullish trend continues or if the price faces a correction.
What are the support levels for Bitcoin if it drops?
If Bitcoin faces a correction, analysts are watching for support levels around $95,000 and $93,000, which could help stabilize the price.
What should traders do right now?
Traders should be cautious, keeping an eye on the $100,000 level and the support levels below. If Bitcoin fails to break through $100,000, there could be more downside risk.
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