Key Points
- Bitcoin faces resistance at $102,350, indicating potential short-term volatility due to declining transaction volume.
- Despite a minor decline, Bitcoin’s momentum remains strong with potential to break through the $102,350-$103,900 supply wall.
Bitcoin has recently encountered a significant resistance level at $102,350. Strong support is present around the $96,147 mark.
The market sentiment seems to be balanced, but a decrease in transaction volume could lead to short-term volatility.
Bitcoin’s Current Position
Bitcoin, or BTC, has reclaimed a critical support zone between $96,475 and $99,360. This signals a potential bullish momentum.
At the time of writing, Bitcoin’s price is $98,079.85, reflecting a 0.91% drop over the past 24 hours.
Despite this minor decline, Bitcoin’s overall momentum remains strong, especially with the $102,350–$103,900 supply wall in sight.
Bitcoin’s Chart Analysis
Bitcoin’s price chart shows an incoming inverted head and shoulder pattern, often seen as a bullish signal.
The price has consolidated between $96,147 and $102,806, forming a critical resistance zone.
If Bitcoin holds above $96,147, it could break through the $102,350–$103,900 region, pushing towards $104,000.
The Relative Strength Index (RSI) was at 44.45 at press time, indicating that BTC was approaching oversold conditions.
NVT Golden Cross Indicator
The NVT Golden Cross indicator, which measures Bitcoin’s network value to transaction volume, showed a 24-hour percentage change of -23.09%.
This indicates a decline in transaction volume relative to BTC’s price increase, suggesting that the rally may not be fully supported by network activity.
Despite being bullish, the lack of sufficient transaction volume could signal that the rally may lose steam.
Market Sentiment
Market sentiment shows a tight contest between bulls and bears.
With 111 bulls versus 114 bears in the past week, the market sentiment remains relatively balanced.
Bear pressure persists, signaling that BTC could face resistance as it approaches the $102,350 supply wall.
Trader Expectations
Bitcoin’s Long/Short Ratio reveals that more traders are betting against further price increases.
At press time, 45.16% of positions were long, while 54.84% were short.
This suggests that a majority of traders are anticipating a price pullback in the short term.
Bitcoin’s Potential Breakthrough
BTC’s recent recovery, combined with its critical support levels and potential bullish patterns, suggests that the cryptocurrency will likely break through the $102,350–$103,900 supply wall.
However, the current lack of strong transaction volume and continued resistance from the bears may result in some volatility.
While Bitcoin is poised to break the supply wall, the journey may involve some fluctuations before a clear breakout.