Despite recent price fluctuations in the past few days, there is still robust optimism and confidence in Bitcoin‘s potential for a significant rally in the short term. Multiple seasoned crypto analysts have cited the psychological $100,000 as the next key level to watch once BTC regains its upside momentum.
Bullish Trajectory Toward $100,000 Hinges On Key Trends
Bitcoin may be demonstrating bearish performance, triggering uncertainty among traders and investors within the crypto community about its much-anticipated rally to the $100,000 milestone. However, Negentropic, a market expert and trader, remains optimistic about BTC’s path to the pivotal level, implying that the rally is still intact.
Even though Bitcoin’s $100,000 journey is still alive, the market expert claims that the digital asset needs to consolidate and create a compression zone in order to break past the milestone, a key level capable of altering the performance of the entire crypto market, as suggested by a daily channel.
With BTC entering into a phase of consolidation, this development would enable the asset to establish a strong foundation, lowering volatility and drawing in new liquidity that will bolster notable upward movements. The extended accumulation period and less selling pressure will ultimately provide BTC with the impetus to soar to the $100,000 mark.
However, Negentropic has urged investors to keep an eye out for liquidity wicks as the Simple Moving Average (SMA) 20 retests below, noting that the development could make it difficult for traders to spot temporary channel breaks.
It is worth noting that while Bitcoin hitting $100,000 is expected to spur a wave of optimism and attract old and new investors, the market expert has highlighted a different scenario for BTC when this crucial moment materializes.
Addressing the aftermath of this milestone, Negentropic has warned that the much-anticipated price range may lead to substantial profit-taking. This suggests that investors might be looking to sell their holdings at the pivotal level in order to secure profits as volatility may arise.
Meanwhile, the recent sell-offs have not been as intense in comparison to March, when Bitcoin reached its previous all-time high of $73,000 and the $70,000 retest in late May. He further highlighted that a dramatic rise in profit-taking will increase the likelihood of a price correction in the near term.
Positive Sentiment Returning For Bitcoin?
BTC‘s sudden drop from the $99,600 range last Friday sparked speculations about its ascent to $100,000 as the crypto asset continued declining, retesting $91,000. During this period, investors went on a selling spree to lock in gains, which is believed to have resulted in the price decline.
Thus far, Bitcoin appears to be slowly recovering from the recent fall, as the asset has risen to $93,000 once again. This slight rebound has reignited investors’ optimism towards its future performance indicated by an over 9% increase in its trading volume in the past day.
Featured image from Unsplash, chart from Tradingview.com