Market Sentiment Turns Bearish as Bitcoin Fails to Break $100,000
Bitcoin (BTC) aimed for a rebound to $100,000 on December 25 but fell short, triggering doubt among short-term holders. The current market sentiment is bearish, with significant indicators reflecting decreasing confidence. Resistance at $99,332 poses challenges, and a further decline towards $85,851 is possible unless momentum shifts.
On December 25, Bitcoin (BTC) experienced a surge in hopes of achieving the coveted $100,000 benchmark. However, this anticipated rally was short-lived, as the price ultimately failed to surpass this significant milestone. Consequently, concerns have arisen among short-term investors regarding the feasibility of a recovery within the foreseeable future.
Presently, sentiment surrounding Bitcoin remains predominantly bearish. Following this unsuccessful attempt to reclaim the six-figure mark, Bitcoin’s value has dipped below $97,000, resulting in a decline in its market dominance. The latest data from IntoTheBlock reveals a decrease in the Addresses by Time Held metric, which tracks the activity of holders persisting with their investments from 30 to 365 days. This downturn among short-term holders, who significantly influence market sentiment, signifies decreasing confidence in Bitcoin’s recovery prospects.
Additionally, the Short-Term Holder – Net Unrealized Profit/Loss (STH-NUPL) indicator has shifted into a territory of uncertainty, suggesting that investors who have held Bitcoin for less than 155 days are feeling skeptical about the market. According to Glassnode, this metric has dropped into the “hope” or “fear” zone, further indicating that if this trend continues, Bitcoin may face substantial challenges in generating the necessary demand for an upward price movement.
Analysis of Bitcoin’s price action reveals notable resistance at $99,332. This obstacle largely contributed to the failed attempt at rallying towards the $108,398 target. Moreover, the Relative Strength Index (RSI) has fallen below the neutral mark of 50.00, illustrating a bearish shift in momentum. Should this trend persist, Bitcoin’s price may potentially decline to levels nearing $85,851. Conversely, should Bitcoin surpass the $99,332 resistance, it might open the door for a resurgence towards $110,000.
Bitcoin, the leading cryptocurrency, has often been subjected to volatile price fluctuations, drawing significant attention from both investors and analysts. Each price fluctuation reflects broader market sentiment influenced by a variety of factors, including market demand, investor confidence, and external economic conditions. The current analysis focuses on the recent attempts to breach important price barriers and the resulting implications for short-term holders amid prevailing bearish sentiments.
To summarize, Bitcoin’s recent failure to reclaim the $100,000 threshold has raised doubts among short-term holders regarding an immediate recovery. The prevailing bearish sentiment is echoed in several analytical indicators that showcase declining confidence and potential further declines in price. Without a decisive turnaround from bulls, Bitcoin risks falling significantly below current levels, causing ongoing concerns in the cryptocurrency market.
Original Source: beincrypto.com
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