Bitcoin Price Holds Steady Between $96,000 and $98,000 Amid Support
The Bitcoin price is currently between $96,000 and $98,000, having dropped below the $100,000 mark. Analyst Ali Martinez explains this stability.
Bitcoin Price Stability Analysis
Martinez highlights that a key support level for Bitcoin lies between $98,830 and $95,830, where 1.09 wallets acquired over 1.16 million BTC. This strong support from investors who purchased in this range helps maintain the current price level. A significant sell-off could lead Bitcoin to fall below $90,000. The recent drop below $100,000 follows comments from Federal Reserve Chair Jerome Powell indicating a hawkish stance, which negatively impacts risk assets like Bitcoin.
Despite the price decline, most Bitcoin holders remain profitable, with 86% of them in profit according to IntoTheBlock data. Accumulation continues, with 74,052 BTC withdrawn from exchanges in December, suggesting bullish sentiment among holders.
Traders' Market Sentiment
Martinez indicates that traders are expecting a bullish reversal for Bitcoin. Initially, 62.17% were shorting Bitcoin at $108,000, but now 55.44% are looking to take long positions below $96,000. Maintaining the $96,000 support is crucial; if lost, the focus shifts to potential drops to $90,000 and $85,000. Conversely, analyst Justin Bennett maintains a bullish outlook, targeting $110,000 for Bitcoin.
As of now, Bitcoin is trading around $97,000, reflecting a decline of over 3% in the last 24 hours, according to CoinMarketCap data.
