Bitcoin’s price exceeded $98,000 on Thursday, it was boosted by leverage after open interest jumped by 7.2% during one day to $2.4 billion. The upward price movement of Bitcoin fails to find sufficient demand among institutional and retail investors who maintain a rangebound market position. Since reaching its $98,000 peak Bitcoin must prove it will continue its upward climb without facing potentially negative conditions.
Bitcoin Faces Resistance as Demand Weakens
Multiple attempts by the cryptocurrency to surpass its essential descending trendline have failed. The Bitcoin price has already failed to exceed this threshold three times according to crypto analyst Ali Charts. BTC maintained optimism after surpassing $98,000 in value but continued restraint from breaking the downward trendline exposes it to new risks of price decline.
This threshold price has made previous cross-attempts end with sudden selling momentum. The ongoing exhaustion of demand makes another rejection potentially dangerous for the price to lower. The market follows Bitcoin’s ability to maintain its current value points as investors watch for another price decrease because of the existing resistance level.
On-Chain Data Signals Caution for Bitcoin’s Price
Market statistics demonstrate a major decrease in Bitcoin market demand. The Accumulation Trend Score presents an unoptimistic sentiment by showing that major investors are not accumulating Bitcoin. Major owners avoid actively purchasing Bitcoin while it retains its current market value according to the Accumulation Trend Score.
The chart analytics on CryptoQuant demonstrate a substantial decrease in Bitcoin’s recorded market demand figure. The data point reveals a major decline from 279,000 in December to its current value of 70,000. Economic uncertainties and negative demand factors including inflation and FTX repayment pressures explain the reduced interest in Bitcoin transactions.
Bitcoin’s Fear and Greed Index Reflects Market Sentiment
The recent Bitcoin Fear and Greed Index revealed “Greed” after prices rallied but demand weakened significantly. Positive trader sentiment exists indicating that Bitcoin might avoid a substantial price decrease. The failure of renewed buying pressure would make it challenging for Bitcoin to surpass the $100,000 resistance point.
Key Support Levels to Watch
BTC price behavior heavily relies on its success to defend major support price points according to analyst Budhil Vyas. BTC has opportunities to develop a healthier uptrend after successfully defending its support between $94,000 and $96,000 with strong buying pressure. When Bitcoin cannot sustain this support price range the selling activity intensifies thus pushing Bitcoin values downwards.
The successful recovery at this support position will create conditions for Bitcoin to aim at breaking past its $99,350 resistance barrier. The price potential for BTC to reach $100,310 requires growing consumer interest in the market.
What’s Next for Bitcoin?
Bitcoin price remains restricted within a limited price zone due to market resistance factors and declining market interest. The cryptocurrency may break towards fresh highs if accumulation patterns evolve while market demand increases. A lack of price growth at this time might create another market decline. Bitcoin price movements depend on investor scrutiny of its critical resistance and support thresholds while markets remain unclear.
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