The post Bitcoin Hits $97,000-Is This a Fake Breakout or the Start of a Fresh Bullish Action for a New ATH? appeared first on Coinpedia Fintech News
Bitcoin officially turns 16, with the genesis block being mined for the first time this day. Nevertheless, the price remains consolidated within a narrow margin, suggesting a continuation of a sluggish trend for some more time. However, the rise in the spot ETF accumulation, which now holds over 5.7% of the total supply, flutters bullish flags over the crypto. On the other hand, the retail traders are constantly taking profit on BTC, suggesting a drop in their confidence over the token. In such a scenario, is a new ATH above $110K still viable?
The sluggish close for the year 2024 was believed to have a negative impact over the trade in 2025. Meanwhile, the bullish rebound from the interim lows is close to $91,000, reviving the bullish hoopes with a possibility of securing $100K. However, the profit taking over the crypto has surged to a large extent that may have kept the token within the consolidated range. As per the data shared by the popular analyst, ALI, the traders holding long positions have closed significantly.
The long positions have seen a significant drop from 66.33% to as low as 56.85% in the past 24 hours. This indicates the traders are still uncertain over the upcoming price action and as a result, they have been closing the positions. This has caused the price to remain consolidated within a narrow range, preventing the BTC price from rising above the resistance zone just below $100K. However, the technicals are turning bullish, indicating the price may overcome the persisting consolidated phase and eventually mark a new high.
The price is testing the crucial resistance at the 50-day MA, which has attracted a significant upward pressure. Meanwhile, the MACD has displayed a drop in the selling pressure while the levels are about to undergo a bullish crossover. Moreover, the bull market support band (BMSB) is also heading for a similar crossover in the daily chart, which suggests the price may undergo a fresh bullish action soon.
Regardless of the technicals turning bullish, the token is expected to remain consolidated within a range for a while. Mainly because the volume over the platform has dropped significantly. On the other hand, the BTC exchange reserves have also plunged heavily, suggesting the market participants are bullish on Bitcoin in the long term. As a result, they wish to hold instead of keeping the tokens over the exchange and perform a trade.
Therefore, the Bitcoin (BTC) price is believed to maintain the horizontal consolidation below $100K until it receives the required volume to trigger a strong breakout.