Bitcoin: Breakout in Sight or Bear Trap?
- Bitcoin in key position.
- Breakthrough in sight.
- Confirmation is essential.
In a recent move, the Bitcoin is in a delicate position, between crucial support and resistance levels. The expectation of a breakout is palpable, but analysts warn of the importance of confirmation before any bolder move.
According to recent data shared by renowned cryptocurrency analyst Ali Martinez, Bitcoin is “stuck” between two walls: one of demand, with 1,43 million BTC between $94.660 and $97.540, and another of supply, with 1,16 million BTC between $97.650 and $99.470. This setup suggests that Bitcoin is at a decision point, with a breakout in either direction potentially defining the trend for the coming weeks.
Analyst Ali Martinez, known for his accurate technical analysis, has been closely monitoring Bitcoin’s movements and sharing his observations on Twitter. According to him, Bitcoin is at a “crossroads,” with the price oscillating between the aforementioned support and resistance levels.
“Bitcoin is stuck between key levels, with a 1,43 million BTC demand wall between $94.660 and $97.540, and a 1,16 million BTC supply wall between $97.650 and $99.470. A breakout in either direction could define the trend!” stated . In another analysis , he highlighted that Bitcoin looks ready for a breakout, but confirmation is key before the next move!”.
Source: TradingView/Ali Martinez
The importance of confirmation lies in the fact that a false breakout can lead to significant losses for traders. If the price breaks through resistance but there is not enough buying power to sustain the move, Bitcoin could quickly return to previous levels, frustrating bullish expectations. Similarly, if the price breaks through support but there is not enough demand to absorb the supply, Bitcoin could fall further, hurting investors who had bet on the bearish move. In short, Bitcoin is at a crucial juncture, with an imminent breakout that could define the future of the cryptocurrency. However, confirmation is essential to avoid pitfalls and unnecessary losses.
At the time of publication, the price of Bitcoin was quoted at US$97.652,97, up 0.8% in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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