- Bitcoin faces resistance at $97,530, and a breakout could signal further price increases.
- Retail sell-off shows fear while whales accumulate, potentially driving future price growth.
- MACD indicator signals weakening bearish momentum and suggests a potential bullish breakout.
The price of Bitcoin (BTC) has fluctuated between $91,000 and $109,000 over the last three months, leading to confusion among traders about its next direction. In an X post on Thursday, analyst Ali Martinez highlighted that the Bitcoin market has recently displayed a gradual bullish trend that could indicate a trend reversal.
Bitcoin Resistance and Support Levels
Bitcoin’s resistance level is $97,530, and any breakout past this level could trigger further price increases. The analyst indicated that support is weak below $92,110, with a significant gap between $90,000 and $70,000. This leaves room for higher volatility if the price drops below $92,110, as there is little support in that range.
Analytical platform Santiment highlighted that the number of non-empty Bitcoin wallets has declined by 277,240 over the past three weeks. This formation indicates that smallholders and retail investors are selling their Bitcoins, possibly signaling the start of a downtrend. The drop in wallets reflects growing risk and instability among retail investors, leading them to avoid further losses.
This failure to engage in retail mostly indicates fear in the market while, at the same time, giving a chance to bigger investors. Retail investors are offloading their BTC, while large investors and whales are accumulating it. Historical evidence shows that major players cause price movements to rise when they buy during periods of market fear.
Related: Bitcoin OTC Reserves Drop to 140,000 BTC: Supply Crunch Looms
Bitcoin Technical Outlook
Bitcoin’s technical analysis supports this forecast, as key indicators suggest a potential trend shift. The 50-day Exponential Moving Average (EMA) places Bitcoin’s support level at $93,572. On the bright side, the resistance level of BTC is at $103,278.
Also, the MACD indicator has had several negative consecutive bars, all shrinking, suggesting that the negative momentum is declining. The shift suggests a probability of a bullish breakout for Bitcoin and a potential reversal from bearish sentiment.
