Bitcoin price has recovered from more substantial declines earlier this week that took it to a monthly low, but it is still struggling to get back into six-digit territory.
With just hours left until the weekly close, here are the potential risks the cryptocurrency faces if it remains below this coveted level.
Will BTC close below $100,000?
The last two weeks of 2024 were quite painful for BTC as its price fell from its last all-time high recorded on December 17 from over $108,000 to $91,300 within days. The latter occurred on December 30 and marked the lowest price of the asset in more than a month.
However, bitcoin reacted well to this correction and is now above $98,000. This represents an increase of 7.5% from that low. On a weekly basis, BTC is up 3.5% compared to last Sunday’s valuation.
Perhaps the most important factor keeping bitcoin below $100,000 now is the “stiff supply wall” appearing at its current levels. This means that many investors have accumulated their BTC holdings at prices between $98,000 and $100,000, essentially turning these levels into critical resistance lines, according to Ali MartÃnez.
#Bitcoin $BTC faces a rigid supply wall of between $98,000 and $100,000 that is currently acting as resistance. pic.twitter.com/GrDNNATLgT
– Ali (@ali_charts) January 4, 2025
On the positive side, the same analyst highlighted a very bullish evolution for BTC, which occurred at the end of 2024. More than 48,000 BTC (valued at $4.7 billion at current prices) were withdrawn from exchanges, thus reducing the pressure of Immediate sale.
More than 48,000 #Bitcoin $BTC have been delisted from exchanges last week, valued at over $4.5 billion! pic.twitter.com/V1agc0EtCe
– Ali (@ali_charts) January 3, 2025
Where do we go next?
Martinez believes BTC could retest the 50-day moving average, which currently sits at just under $97,000. Although Bitcoin is currently above that level, it needs to close there, which will be “essential to signal the end of the correction and confirm bullish momentum.”
#Bitcoin $BTC remains at a critical point. This could simply be a retest of the 50-day MA ahead of a possible move lower. A sustained close above the 50-day moving average is essential to signal the end of the correction and confirm bullish momentum. pic.twitter.com/ppfEjfoJkc
– Ali (@ali_charts) January 3, 2025
The analyst told his more than 100,000 followers on In his latest post, Martinez highlighted that BTC has to close above $100,000 to invalidate this bearish setup, which is not currently the case.
I’m cautiously optimistic because, as far as we know, #Bitcoin $BTC could be forming a head and shoulders pattern that anticipates a correction to at least $78,000. That is why a strong close above $100,000 is crucial to invalidate this bearish setup. pic.twitter.com/2O1y3sEWgq
– Ali (@ali_charts) January 4, 2025
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