Bitcoin’s much-awaited milestone of $100,000 has finally been achieved and is trading at $98,378.39 at press time. While the whole crypto market is jubilant about this breakthrough, technical analysis reveals that BTC could experience price corrrections. Bitcoin’s journey to its current price was fraught with various ups and downs and there is a possibility for it to experience a potential pullback to the $85K range.
Price corrections are the norm in trading, and this is especially the case in the highly volatile cryptocurrency market. Falling after a peak is a common trend that is observed Bitcoin charts. The masssive selling pressure of the market created by long-term holders contribute these short-term dips.
In this bullish market, the Relative Strength Index of BTC could be at overbought conditions. This means large numbers of investors and institutional traders are snapping up the coins despite their relatively high prices. In such cases, the market cools down to correct the prices.
The Story of Resilience: Journey of Bitcoin from $0-$100KIn a similar fashion, Bitcoin’s next major resistance levels are $105,000 and $110,000. If BTC fails to cross these resistance levels, the price will likely retrace back to the $85,000 support range. Additionally, its price could dip if there are any new announcements that are not beneficial to crypto or changes in the regulatory space.
In the upcoming days, Bitcoin could experience a consolidation. The new ATH could be retested multiple times and the price could plunge. Yet, the number of days of consolidation could not be defined.
