Bitcoin Cost Basis Distribution Reveals Strong Demand At $97K Can BTC Hold?
Bitcoin has had a whirlwind few days, hitting an all-time high (ATH) last Tuesday before tumbling into a sharp 15% correction. This period of heightened volatility has left investors divided, with some expecting a continued uptrend while others brace for more downside. The market is closely watching Bitcoins ability to reclaim its bullish momentum.
Top analyst Ali Martinez has highlighted critical data from the Bitcoin cost basis distribution, pointing to $97K as a crucial support level. Martinez stresses that holding this level is essential for BTC to maintain its uptrend and fend off deeper corrections. However, Bitcoins price action remains uncertain as it struggles to break through the psychological barrier at $100K.
While many investors see the recent correction as a healthy reset after BTCs meteoric rise, the failure to push higher could signal a more prolonged consolidation phase. With Bitcoin trading near pivotal levels, the coming days will be critical in determining whether it will resume its climb to new highs or face additional headwinds.
Bitcoin Holding Above Key Demand
Bitcoin is holding steady above a critical demand level around $97,000, offering a beacon of hope for bulls after recent volatility. This stability follows a brief test of lower demand at $92,000, which reinforced the markets ability to absorb selling pressure. While the short-term recovery is encouraging, the price remains at a pivotal point that could determine its trajectory heading into the new year.
Martinez recently shared insights from the Bitcoin cost basis distribution, emphasizing the importance of the $99,000$97,000 range. His data highlights this zone as the most significant support threshold for Bitcoin, acting as a critical line in the sand for the current uptrend.
However, Martinez warns of the potential downside risk if Bitcoin fails to hold this range: We really dont want this level to become resistance.
As Bitcoin consolidates near these key levels, sentiment across the market remains indecisive. Bulls are eager to see BTC reclaim momentum and push toward all-time highs, but the psychological resistance around $100,000 continues to loom large. Meanwhile, bears argue that the recent pullback could be a sign of an impending larger correction.
The coming days will be crucial as the year draws to a close. With market participants looking for clarity, Bitcoin must hold this critical support zone or risk losing its bullish structure. Whether the next major move is up or down will depend heavily on how BTC reacts within this price range.
BTC Testing Liquidity
Bitcoin is trading at $97,000, showing resilience after rebounding from local lows of $92,000. This bounce highlights the markets strong demand at lower levels, reinforcing the bullish narrative for now. The price structure remains intact above $97,000, indicating that BTC is well-positioned to stage another rally toward its ATH.
However, the $100,000 psychological barrier looms large as the next major hurdle for bulls. This level has proven difficult to overcome, with previous attempts falling short. A successful breakout above $100,000 in the coming days would likely reignite bullish momentum and set the stage for Bitcoin to reach new ATHs, restoring confidence among investors and traders.
On the flip side, failure to breach this critical resistance could trigger a less favorable scenario. If Bitcoin struggles to gain traction above $100,000, market sentiment may waver, leading to increased selling pressure. In such a case, BTC could face another downturn, testing key support levels once again.
Featured image from Dall-E, chart from TradingView
Text source: NewsBTC
