Crypto investors are closely watching the **Bitcoin price** as it navigates crucial technical levels. The digital asset recently encountered significant resistance, sparking debate about its immediate future and the potential for a push towards the coveted $100,000 mark.
Why Did Bitcoin Price Stall at $98K?
On May 3, the **Bitcoin price** attempted to surge past the $98,000 level but was met with strong selling pressure. This area acted as a significant resistance point, preventing the upward momentum from continuing. Reports indicate that profit-taking played a role, with holders selling some of their positions as the price approached this key psychological and technical barrier.
Understanding resistance and support levels is fundamental in crypto trading. Resistance is a price level where selling pressure is expected to overcome buying pressure, potentially halting or reversing an uptrend. Support is the opposite – a level where buying pressure is expected to overcome selling pressure, potentially stopping or reversing a downtrend.
What’s Needed for Bitcoin to Reach $100K?
For **Bitcoin $100K** to become a reality in the near term, analysts agree that a decisive move is necessary. Specifically, the **BTC price** needs to achieve a daily chart close above the $95,000 level. This would signal that buyers have overcome the selling pressure encountered below $98,000 and could pave the way for further gains towards the six-figure milestone.
Achieving a daily close above a key level like $95,000 is often seen as a stronger signal than a brief wick or intraday move above it. It suggests sustained buying interest throughout the trading day.
Is Selling Pressure a Risk for BTC Price?
Data from Glassnode highlights a potential challenge: approximately 86% of Bitcoin’s circulating supply is currently in profit. While this indicates a healthy market overall, it also raises caution. Historically, when a large percentage of the supply is in profit, short-term holders (those who bought relatively recently) are more likely to sell to lock in gains. This increased selling activity can contribute to corrections or pullbacks.
Key points regarding potential selling pressure:
- High percentage of supply in profit suggests potential for sell-offs.
- Short-term holders are often more sensitive to price changes and quicker to take profits.
- Increased selling volume can overwhelm buying interest, leading to price drops.
Bitcoin Resistance: A Key Decision Point
Current price action places Bitcoin at a critical decision point. The inability to break the **Bitcoin resistance** at $98,000 means the market is evaluating its next move. Bullish continuation, targeting levels beyond $100,000, hinges on sustained price action above $98,000 following a confirmed break above $95,000.
Conversely, failure to maintain the crucial **Bitcoin support** level at $95,000 would be a bearish signal. Losing this support could trigger further selling, potentially leading to a retest of lower price levels. Analysts suggest that if $95,000 doesn’t hold, the price could fall back towards the $85,000 or even the $75,000 range as the market searches for stronger support.
What Should Investors Watch For?
Investors and traders should monitor the daily closes closely. A close above $95,000 is the immediate bullish trigger. A subsequent break and hold above $98,000 would confirm the bullish path towards **Bitcoin $100K**. Conversely, a daily close below $95,000 would increase the probability of a move towards lower support levels like $85,000 and $75,000.
Market sentiment, global economic factors, and news events also play a role and should be considered alongside technical analysis.
Summary: Navigating the Critical Zone
The **Bitcoin price** is currently in a pivotal phase, testing key levels that will likely determine its short-term trajectory. The failure to overcome **Bitcoin resistance** at $98,000 highlights the challenges ahead. A clear daily close above $95,000 is essential for reigniting hopes of reaching **Bitcoin $100K**. However, the high percentage of supply in profit introduces the risk of increased selling pressure, particularly from short-term holders. Losing the **Bitcoin support** at $95,000 could lead to a significant retrace. The market remains on edge, with bulls needing to prove strength above $95,000 to continue the advance, while bears look for a breakdown below this level.
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