Bitcoin's price has retracted 7% from its peak of $99,800, following a rally from $67,500. This decline highlights increased market caution and the presence of high leverage levels despite deleveraging attempts.
As Bitcoin contends with resistance at the $100,000 mark, bears are beginning to emerge, signaling potential shifts in market momentum. According to CryptoQuant analyst Axel Adler, the $93,000 level remains a battleground due to key long positions established there.
This retracement raises concerns over further downside risks, potentially leading to a correction towards $88,500 or continued consolidation below $100,000.
If the price holds above $92,000, Bitcoin could maintain a bullish stance, setting the stage for potential recovery towards previous highs. Alternatively, a drop below this key level might trigger further declines and solidify bearish momentum.
Market participants focus on these critical levels to assess whether Bitcoin's current pullback is a pause or indicative of a deeper correction. The coming weeks are pivotal for shaping the broader cryptocurrency market landscape.
