Bitcoin Price Dips But Nears $100K Pullback or a Launchpad?

The bitcoin price struggled near $107,000 and corrected gains. BTC is now approaching $100,000 and might find bids in the near term. Over the past decade, it has become a barometer for the health of the broader cryptocurrency market. Recently, Bitcoin experienced a minor pullback after inching dangerously close to the monumental $100,000 mark, sparking a global conversation.

• Bitcoin started a downside correction from the $107,000 zone.
• The price is below $103,500 and the 100-hourly simple moving average.
• Below was a break in a connecting bullish trend line with support at $104,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $100,000 support zone.

Bitcoin Price Dips Again

The price of bitcoin began a respectable ascent above the $105,500 zone. Above the $106,000 and $106,500 marks, BTC was able to rise. Even beyond the $107,000 mark, the bulls drove prices higher. Nevertheless, over the $107,000 zone, bears were active. The price is currently retracing its gains after hitting a high of $107,080. Under the $100,000 mark, a change occurred.

The BTC/USD pair’s hourly chart also shows a break below a connecting positive trend line with support at $104,800. They probed the $100,000 area. The pair is currently consolidating losses after forming a bottom around $100,700. Presently, the price of bitcoin is trading below $103,500, which is also the 100-hour simple moving average. Near the $102,200 level, the 23.6% Fibonacci retracement level of the decline from the $107,080 swing high to the $100,700 low is immediate resistance on the upside.

$100K Benchmark and Market Milestone

The $100,000 mark for Bitcoin has long been seen as a psychological and technical milestone. Analysts have linked it to Bitcoin’s past significant moments, such as surpassing $1,000 in 2013 or $20,000 in 2017. These milestones attract ordinary investors and institutional participants, who consider them crucial market development and acceptance markers.

Reaching $100K would imply far more than a basic price point. It would represent the continuous recognition of Bitcoin as a legitimate asset class, reinforcing its role as “digital gold.” Institutional investors, such as pension and sovereign wealth funds, are drawn to stable and well-accepted investments, so this level could encourage more investment from these sources.

More losses in BTC?

A price decline might be imminent if Bitcoin cannot break through the $102,200 resistance level. Near the $100,500 mark, there is immediate support on the downside. The first significant amount of support is close to $100,000. The $88,500 zone is now the next potential support. If the price continues to fall, it can soon reach the $86,500 support level.

• Hourly MACD: The MACD is now gaining pace in the bearish zone.
• Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 level.
• Major support levels: $100,500, followed by $100,000.
• Major Resistance Levels: $102,200 and $104,000.

The first key resistance is near the $104,000 level. It is close to the 50% Fib retracement level of the downward move from the $107,080 swing high to the $100,700 low. A clear move above the $104,000 resistance might send the price higher. The next key resistance could be $105,000.

Conclusion

Given its volatility, Bitcoin’s recent drop below $100K is expected. However, institutional uptake, retail resiliency, and macroeconomic fundamentals suggest this downturn may be a launchpad. As the cryptocurrency ecosystem evolves, Bitcoin enhances its role as a store of value and a hedge against economic volatility.

Several variables could affect Bitcoin’s future. Bitcoin may surpass $100K in the next months due to additional ETFs, sovereign wealth fund adoption, and favorable regulatory developments. Bitcoin Price Dips. Investors should be wary since global monetary policies and technological changes could affect its growth.

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