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Why is Bitcoin Price not Crashing Today?

Published by
Anjali Belgaumkar

Bitcoin is currently trading above the crucial $95k level and is up by more than three percent in the last 24 hours. The largest cryptocurrency is showing signs of a short-term bullish divergence, as it tries to regain a key Fibonacci level. This is happening alongside a new bullish cross on the Bitcoin indicator. 

According to Santiment, Bitcoin’s Mean Dollar Invested Age (MDIA), which tracks the average age of coins in wallets, has dropped significantly since mid-October 2023, signaling a bullish trend. This decline shows that coins previously sitting idle in wallets are now being circulated. The average age of Bitcoin has fallen from 637 days to 466 days, a 27% drop, with a 9% decrease in just the past three weeks. As long as the MDIA continues to drop, it suggests that the market is in a bull phase.

Looking at the Bigger Picture

Analyst Josh of Crypto World said that Bitcoin is still looking bullish overall, showing strong signs of a potential long-term bull run despite some short-term pullbacks. However, there’s still resistance at the 16.8 Fibonacci extension, which is around $100,000 to $102,000. 

Bitcoin is trying to reclaim levels around $94,000 to $95,000. After briefly falling below this level, it’s now attempting to break back above. A close above $95,000 in the next few days could signal a positive short-term move.

Next Resistance Levels to Watch

If Bitcoin manages to break past $95,000, the next resistance areas are around $100,000 and $102,000. A confirmed breakout above these levels could push Bitcoin higher, possibly reaching $113,000. On the downside, we could see support around $89,000 if there’s a pullback.

Short-Term Bearish Divergence

In the shorter term, on the 12-hour chart, Bitcoin is still showing a bearish divergence. This means there might be some choppy price action in the next few days. While this could lead to a slight pullback or sideways movement, it’s not necessarily a major concern. In the past, similar patterns have led to breakouts after a period of consolidation.

Breaking the $100,000 Level

If Bitcoin breaks above $100,000, it could trigger a major short squeeze, pushing the price significantly higher. This would be similar to what happened when Bitcoin broke past the $20,000 mark in the previous bull cycle.

FAQs

Will Bitcoin reach $100,000 soon?

Bitcoin is attempting to reclaim $95,000. A close above this level could signal a move towards $100,000, with a potential breakout after consolidation.

How might a Bitcoin breakout above $100,000 affect the market?

Breaking above $100,000 could trigger a short squeeze, pushing Bitcoin higher, similar to past bull runs like the $20,000 breakout.

Why is Bitcoin going up today?

Bitcoin surged from whale buying, reduced exchange supply, and renewed retail and institutional interest.

Anjali Belgaumkar

Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

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