Analyst Warns Bitcoin May Face Resistance at $100,000 Milestone

A crypto analyst has indicated that the Bitcoin price may encounter psychological resistance around the $100,000 milestone. Despite this bearish outlook, Bitcoin's ongoing upward movement towards this target remains a focal point within the cryptocurrency community.

$100,000 Bitcoin Price As A Psychological Resistance

Analyst Gert van Lagen announced on X (formerly Twitter) that Bitcoin is approaching its all-time high of $100,000. He likened this climb to previous major price levels of $10, $100, and $10,000, suggesting it will serve as psychological resistance, potentially causing short-term price volatility.

Lagen forecasts a possible surge to between $220,000 and $320,000 before a global recession impacts the market. However, he warns that the timeline for reaching these heights may be limited.

In anticipation of the potential barrier at $100,000, Lagen advises investors to consider shorting their BTC positions, betting on a possible price correction before any significant breakout occurs. Currently, Bitcoin trades at $98,560, reflecting a 7.63% increase over the past week amid growing bullish sentiment.

Massive Liquidation To Follow If BTC Hits $100,000

While many anticipate Bitcoin's rise to $100,000, analyst Ali Martinez warns that massive liquidations could occur once BTC reaches this level. He estimates that $1.89 billion could be liquidated if Bitcoin hits $100,625.

This liquidation scenario is based on cumulative short liquidation leverage, following reports that 65,000 BTC, valued at $6.37 billion, were withdrawn from exchanges. Martinez also noted that Bitcoin's TD Sequential indicator is showing a sell signal on the 4-hour chart, predicting a possible correction to $97,085. Conversely, if Bitcoin maintains a candlestick above $100,470, it could invalidate the bearish trend and move toward $102,656 or $104,343.

Featured image from Pexels, chart from TradingView