Bitcoin is currently consolidating around $96,000, facing significant selling pressure while testing key support levels. A rebound could lead to resistance at $100,000 if buyers defend this zone. Increased profit-taking among long-term investors is affecting momentum, and market participants should brace for potential volatility as traders weigh the next move.

Bitcoin is currently facing challenges in regaining its upward momentum, with its price lingering around the 100-day moving average at $96,000. Sellers are attempting to breach this significant support level, and a decisive breakdown could lead to a deeper correction towards the $90,000 mark. Conversely, if buyers successfully defend this area, the cryptocurrency may see a bullish rebound towards the psychological resistance at $100,000. The Relative Strength Index (RSI) remains near the neutral zone, suggesting equilibrium between buyers and sellers, with potential for a breakout in either direction.

Analyzing the 4-hour chart, Bitcoin’s price is contained within a large bullish flag pattern, currently positioned just above its lower boundary. This critical level must hold to maintain the bullish sentiment; a breakout above the upper trendline could stimulate further upward movement. However, should this support level falter, increased selling pressure may result, pushing the price closer to $90,000. Until a breakout occurs, traders are advised to prepare for increased volatility.

On-chain analysis indicates that Bitcoin’s consolidation near its all-time highs is largely due to significant profit-taking among long-term investors. The Long-Term Holder SOPR metric highlights this trend, reflecting that investors holding Bitcoin for over six months have been selling their assets to lock in profits. This selling pressure has inhibited Bitcoin’s ability to extend its rally, yet current profit-taking remains less pronounced than levels seen last summer at lower price points. Should this selling pressure diminish, Bitcoin may secure sufficient momentum to break free from its consolidation phase and venture towards new all-time highs.

In summary, Bitcoin is at a critical juncture, with its price hovering near essential support levels. A decisive move above $100,000 could signal a renewed bullish trend, while a breakdown below $96,000 may invite further decline towards $90,000. Additionally, the activities of long-term investors indicate trends that could influence future price movements. Traders should remain vigilant and prepared for potential volatility in the coming days.

Original Source: cryptopotato.com

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