Bitcoin (CRYPTO: BTC) faces mounting pressure to hold above the critical $100,000 mark, with market participants divided over whether the cryptocurrency will sustain its momentum or retreat further before year-end.
Following a sharp liquidation cascade, where over $1.58 billion was wiped out, Bitcoin is currently trading at $97,620, down 1% in the past 24 hours, according to data from CoinGecko.
The pullback saw Bitcoin dip as low as $94,725 during late European trading hours.
Market Analysts Weigh In On BTC's Path Forward
Alex Kuptsikevich, chief market analyst at FxPro, pointed to another failed attempt by Bitcoin to consolidate above $100,000 as a pivotal moment.
“The bulls once again failed to consolidate above $100,000, triggering an impressive sell-off that bottomed at $94,000,” he noted.
Despite the setback, Kuptsikevich remains optimistic about Bitcoin's trajectory, stating, “We still see potential for Bitcoin to rise into the $120,000 area once resistance at $100,000 is decisively overcome.”
Meanwhile, analysts from 10x Research emphasized the critical role of Bitcoin's $95,000 support level.
“Failure to hold this level could signal that the 2024 highs are already in,” they told Benzinga.
They also noted that the 30-day moving average at $94,336 is acting as a risk benchmark. “A close below $95,000 might suggest an extended consolidation phase, and traders should proceed cautiously.”
Jordi Visser, lead contributor to the In Search of Green Marbles podcast, highlighted Bitcoin's impressive run over the past two years, noting, “Bitcoin is up over 100% for the second year in a row. While debates about a breakout or bubble top dominate, I believe this is still the early phase of Bitcoin's story amidst U.S. stock debasement.”
Visser's analysis included historical signals suggesting further growth potential but warned of short-term volatility.
Also Read: Coinbase Seeing ‘Landmark Month’ In December, Notes Optimistic Analyst Report
Technical And Sentiment Analysis
In a note sent to Benzinga, Fairlead Strategies maintained a neutral short-term outlook for Bitcoin while reaffirming its bullish intermediate- and long-term projections.
Analysts Katie Stockton and Will Tamplin pointed out, “Bitcoin briefly cleared $100,000 last week but failed to hold gains, leaving a flag breakout unconfirmed. Support sits at the 50-day moving average near $84,700, with resistance still around $100,000.”
The firm also noted that Bitcoin's trading pattern resembles a “bullish long-term cup-and-handle,” suggesting that its uptrend remains intact for 2025.
Liquidation Cascade Highlights Market Volatility
Over $1.39 billion in long positions were liquidated, contributing to the price decline, according to data from CoinGlass.
Centralized exchanges accounted for $1.69 billion of the liquidations, while decentralized exchanges on blockchains like Solana (CRYPTO: SOL) saw $307 million in liquidations, data shows.
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