Bitcoin's current price movement indicates that its recent bounce back to $106,000 may face significant hurdles due to persistent resistance in the $106,000-$108,000 area. Following a weekend low, Bitcoin (BTC) rebounded by 3%, but analysts warn that the inability to break above this critical zone could lead to further declines.
Market behavioral data from Glassnode shows waning buyer momentum, suggesting a potential local peak. The number of traders locking in profits is rising, which typically signals that the market is overheated. Currently, 96% of Bitcoin holders are in profit, a figure often connected with impending price corrections.
From a technical standpoint, Bitcoin's upward movement is hindered by supply congestion at the $106,000 mark, a level which has previously caused prices to retract. Analysts stress that Bitcoin requires a decisive daily close above this level to continue its upward trajectory. Should this resistance remain unbroken, a drop toward the psychological threshold of $100,000 could occur as long-position liquidations push prices lower.
Market data reveals a buildup of selling orders above $106,000, underlining the resistance's strength. Current market sentiments are leaning bearish, indicating that proactive measures may be necessary for investors.
Market behavioral data from Glassnode shows waning buyer momentum, suggesting a potential local peak. The number of traders locking in profits is rising, which typically signals that the market is overheated. Currently, 96% of Bitcoin holders are in profit, a figure often connected with impending price corrections.
From a technical standpoint, Bitcoin's upward movement is hindered by supply congestion at the $106,000 mark, a level which has previously caused prices to retract. Analysts stress that Bitcoin requires a decisive daily close above this level to continue its upward trajectory. Should this resistance remain unbroken, a drop toward the psychological threshold of $100,000 could occur as long-position liquidations push prices lower.
Market data reveals a buildup of selling orders above $106,000, underlining the resistance's strength. Current market sentiments are leaning bearish, indicating that proactive measures may be necessary for investors.
