Title: Bitcoin Price Reaches $96,000: Potential Recovery to $100,000 in December Hinted by Latest Analysis
Following its surge past $100,000 a few days ago, Bitcoin [BTC] has experienced several corrections leading to its current level of $97,000.
Recent analysis indicates that BTC may find temporary support around the $96,000 mark. This raises questions about whether Bitcoin is poised for a rebound towards $100,000 or if further decline is in store.
Bitcoin Faces Challenges
Bitcoin has seen a decline of over 2.5% in the past 24 hours, causing it to dip below $97,000. At present, the cryptocurrency is valued at $96,970.58 with a market capitalization exceeding $1.91 trillion.
According to Glassnode, a data analytics firm, an intriguing trend has emerged. The analysis focused on BTC’s Cost Basis Distribution (CBD) metric, shedding light on the clustering of BTC supply at various price levels.
Recent data highlighted an accumulation zone of $99,559 below $100,000, encompassing 125,000 BTC. Another potential short-term support zone was identified at $96,000–$98,000, where 120,000 BTC had been accumulated.
Recent reports from CryptoCrypto had suggested a probable drop in BTC’s price towards the $96,000 support level. This anticipation was based on the king coin’s MVRV ratio hitting a historic mark, typically preceding price adjustments.
Potential for BTC Recovery
In a bid to determine Bitcoin’s future price movement, CryptoCrypto scrutinized the latest data sets to ascertain whether BTC is headed for further declines or if a resurgence towards $100,000 is on the horizon.
CryptoQuant’s data indicated that BTC’s aSORP signal was in the red, suggesting increased profit-taking by investors. During bullish markets, this could indicate a market peak.
Furthermore, the Binary CDD for Bitcoin revealed a higher movement of long-term holders compared to the norm over the last week. Should these movements involve selling, a negative impact on the market could ensue.
Despite these indicators, BTC’s exchange reserve data implied a rise in buying pressure in the previous 24 hours as the metric declined. Additionally, BTC’s accumulation trend score was at a level of 1.
A score nearing 1 suggests a strong accumulation, reflecting investor confidence in the cryptocurrency and potentially triggering a bullish trend reversal.
Presently, Bitcoin is testing its 20-day SMA support level. A successful test at this point could signal a shift in the trend towards $100,000 once again.
The Chaikin Money Flow (CMF) has shown a positive movement, indicating a possible test of support for BTC. Conversely, a rise in selling pressure could lead to a retest of $96,000 in the near future.