Bitcoin continues to struggle with the psychological milestone of $100,000, failing to overcome this critical resistance after a pullback from all-time highs. This prolonged stagnation has sparked discussions about a possible correction or deeper pullback as the market awaits confirmation of Bitcoin’s next big move. Analysts and investors alike are closely monitoring the situation, eager to discern whether the cryptocurrency will reach new heights or succumb to selling pressure.
Adding to these concerns, renowned analyst Maartunn recently highlighted the alarming activity on the chain. More than 8,000 BTC, between five and seven years old, have moved onto the chain, raising questions about the long-term intentions of holders. Historically, these moves have often preceded changes in the market, with increased selling pressure indicating potential weakness.
Activity in these seasoned portfolios could reflect declining confidence or profit taking. keeping Bitcoin subdued below the $100,000 threshold. While bulls and bears remain locked in a battle for dominance, this important metric underscores the growing uncertainty. As Bitcoin’s trajectory hangs in the balance, market participants are preparing to gain clarity on whether this fundamental level will eventually transform into solid support or usher in a downward correction.
Smart money moving Bitcoin
Since early December, Bitcoin has entered a prolonged consolidation phase, struggling to establish clear momentum in either direction. Recent data on the chain suggests that whale activity is playing a critical role in keeping the price in check. According to leading analyst MaartunnA familiar entity, an old Bitcoin whale, has resurfaced and made significant moves that could influence the trajectory of the market.
Maartunn emphasizes that the move above 8,000 BTC echoes a pattern observed just 10 days ago. At that time, the same whale would have moved over 72,000 BTC in total since the consolidation phase began. This whale, often called “smart money,” has been active like never before, indicating strategic positioning rather than impulsive selling.
The implications of this activity are profound. As this whale continues to dump BTC, selling pressure could keep Bitcoin below key psychological levels, extending the current consolidation period for a few more weeks. However, this accumulation and redistribution phase could set the stage for a massive rebound once activity subsides.
Analysts interpret this as a period of preparation by experienced market participants, suggesting that when the dust settles, Bitcoin could experience a powerful bullish breakout.
BTC above key demand level
Bitcoin is currently trading at $95,000 after managing to hold above the critical support level of $92,000. Even though the bears have maintained control of the market in recent weeks, they have not been able to break through the key demand zones at $92,000 and $90,000. These levels have acted as a solid foundation, preventing further declines and signaling resilience among buyers.
If Bitcoin continues to defend these crucial levels, it could pave the way for a quick challenge to its all-time high (ATH). Holding above $92,000 would reinforce bullish sentiment and attract renewed interest from traders and institutional investors eyeing the psychological milestone of $100,000.
However, the path forward is far from guaranteed. A failed attempt to recapture $100,000 could signal exhaustion among buyers, which could trigger a deeper correction. In such a scenario, Bitcoin could revisit lower support zones as market participants reevaluate their strategies.
The next few weeks will be critical for Bitcoin’s trajectory. Whether it reaches new heights or faces a significant pullback will depend on its ability to hold key levels and overcome the psychological barriers that have kept it below $100,000. Investors are watching closely, anticipating Bitcoin’s next decisive move.
Featured image of Dall-E, TradingView chart
Fountain: NewsBTC.com
