Following a drop beneath the $115,000 mark over the weekend, Bitcoin has hit a significant threshold that could influence the future direction of the crypto market. It ultimately hinges on the support levels and the volume of purchases that can actually mitigate the impacts of extensive sell-offs that are persistently driving down the price. However, should bulls manage to maintain their position, it may indicate sufficient momentum exists behind the cryptocurrency to strive for new peaks.
Why Bitcoin Needs to Retain $100,000
In an evaluation, crypto and market analyst MasterAnanda has highlighted that the Bitcoin price is already firming up support which could assist in halting the downtrend. Addressing the existing market downturn, the analyst points out that the price is essentially only down 8% since reaching its $123,000 all-time peak on July 14. This pullback is nothing unusual, which MasterAnanda describes as “part of the routine dynamics of the market.”
Related Reading
The present Bitcoin price movements have not raised any concerns, as corrections are anticipated and necessary for the price to proceed with its ascent. As the analyst clarifies, such movements typically result in the cryptocurrency attaining new higher peaks over an extended period.
Currently, there is considerable backing for the Bitcoin price exceeding the $110,000 mark. This indicates that despite bears pressing down aggressively, buying activity remains absorbing the excess supply in the market. The analyst emphasizes this support level as crucial but underscores an even more significant and robust support level positioned just above $100,000.
This $100,000 threshold has remained a psychological benchmark since it was first achieved back in December 2024, becoming the crucial level to maintain if the market aims to persist in its upward trajectory. The crypto analyst articulates that as long as the Bitcoin price stays above $100,000, the bulls will continue to hold sway.
Related Reading
“After a few weeks, or several months, just as occurred previously, Bitcoin will ascend. So while short-term retraces and corrections can be expected, this is merely temporary; in the long run, we will see growth,” stated Master Ananda.
Nevertheless, there remains the chance that the price could dip below the $100,000 mark. In such a scenario, it would signify a disconfirmation of the bullish narrative, and the analyst indicated that the short- and mid-term evaluations would require reassessment and modifications if this occurs.
Featured image from Dall.E, chart from TradingView.com