3 hours ago
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Bitcoin Faces Key Resistance at $100,000 Amid Market Indecision
Bitcoin is currently trading in a narrow range between $86,000 and $90,000, indicating market indecision. This price action suggests a potential transition toward a bearish phase.
- The average cost basis for new whales is around $100,500, highlighting a critical level where distribution or accumulation could occur as the price approaches $100,000.
- For Binance spot users, the cost basis is approximately $56,000, marking a long-term support zone crucial during bearish phases.
- Long-term whales have a cost basis near $40,000, maintaining profits even after recent corrections, which may lead to increased realized gains.
Market Structure Insights
- Bitcoin's current consolidation above $88,700 follows a decline from highs of $120,000–$125,000. This reflects a slowdown in momentum and a shift to a corrective phase.
- The rejection above $110,000 indicates distribution rather than a temporary pause, yet prices remain above long-term moving averages.
- Volume analysis shows initial selling pressure has decreased, suggesting seller exhaustion, though buyer activity remains tepid.
- The $86,000–$88,000 range is crucial for maintaining the bullish structure; a breakdown may lead to further declines.
- A recovery above $95,000 is necessary to restore bullish momentum and target previous highs.