Following a strong performance in November, Bitcoin [BTC] has now transitioned into a phase of stabilization. However, a key metric for BTC has indicated a potential shift in market sentiment. Could this development propel BTC towards the $100k mark?
Is this the Bottom for Bitcoin?
After hitting $99k last week, BTC experienced a significant pullback, dropping to $91k. Yet, there were signs of improvement as BTC maintained levels around $96k.
Currently, the dominant cryptocurrency is trading at $96,431.49, boasting a market capitalization exceeding $1.9 trillion. Amidst speculation of BTC aiming for $100k, recent analysis showcased similar prospects.
An update from Glassnode highlighted the Seller Exhaustion Composite for Bitcoin, which signaled a positive change in market sentiment on the weekly timeframe. This could potentially indicate that Bitcoin has reached its market trough.
Crypto analyst Ali Martinez also hinted at BTC reaching $99k in the near future. Martinez’s analysis pointed out a descending wedge pattern on BTC’s chart, suggesting a potential rally around Thanksgiving.
Furthermore, large BTC holders, known as whales, have been accumulating the cryptocurrency. According to Caueconomy, an analyst at CryptoQuant, approximately 16,000 BTC have flowed into whale wallets, totaling nearly $1.5 billion in on-chain accumulation. This accumulation strategy mirrors the confidence of significant players in Bitcoin during market downturns.
Chances of Bitcoin Surpassing $100k
These metrics hinting at a move towards $100k are reinforced by Bitcoin’s Pi Cycle top indicator, projecting a potential market peak above $123k. Conversely, if BTC’s current price does not mark the bottom, the cryptocurrency could retreat to $68k, as indicated by the same indicator.
An analysis of BTC’s daily chart by CryptoCrypto revealed that it is testing the resistance offered by the 9-day Moving Average (MA). A breakout above this level could trigger a fresh uptrend towards $100k as the festive season approaches.
With Bitcoin’s Relative Strength Index (RSI) dropping to 66 after peaking at 82, there is room for further buying activity. This additional buying pressure could facilitate a breakthrough above the resistance level in the days ahead.
However, breaching the $99k resistance level will be essential to propel BTC into triple-digit territory.