Bitcoin has experienced significant volatility this week, struggling to maintain a position above the psychological $100,000 level. This lack of clear direction has split investors, with some anticipating a new high while others prepare for a possible downturn.
CryptoQuant analyst Axel Adler has highlighted the critical support level at $94,500, marking the average purchase price for short-term holders. This level is seen as vital for sustaining market confidence. A successful defense of $94.5K could trigger bullish momentum, while failing might lead to a deeper correction.
Despite the selling pressure and fluctuating prices, Bitcoin's demand remains strong, maintaining prices above the critical demand zones. Investors appear to be resilient, holding strong during this consolidation period.
Analysts identify another crucial resistance at $101,200. Overcoming this resistance could lead to a significant upward trend, driving Bitcoin into uncharted territory. Alternatively, failing to breach this level could lead to a correction targeting the $80,800 support.
The market closely watches Bitcoin's actions around these key levels to determine its next significant move, with traders monitoring potential signs of strength or weakness.
