Emily Walker
Bitcoin (BTC) experienced a notable decline on Friday, falling beneath the $102,000 mark, which concluded a volatile trading week. While global financial markets faced significant downturns, Bitcoin did not achieve any new price highs, raising further doubts about the ongoing bull market.
Key Price Threshold at $98,000 for Bitcoin
Although January showed a generally favorable trend for Bitcoin, it has been unable to firmly establish the continuation of its bull run, with its all-time high only rising by a mere 0.6%.
Investor sentiment remains optimistic about future price increases, and blockchain analytics company Glassnode has pointed out a crucial price level that may be instrumental in Bitcoin’s current bullish outlook. In a recent update on X, Glassnode noted that a significant volume of BTC has been traded between $94,000 and $101,000 in the past 45 days.
This trend has led to the formation of a substantial supply cluster around the $98,000 mark, which indicates that many investors are purchasing BTC within this range. Typically, areas of high buying volume are vital, as they often act as robust support during market pullbacks and can become resistance levels during price surges.
If Bitcoin manages to stay above $98,000 for a prolonged period, this range may serve as a solid base, facilitating potential upward movements. Conversely, if the price drops below this level, it could become a formidable resistance point as investors might choose to sell off assets to mitigate losses.
Looking at immediate price action, if Bitcoin bulls succeed in maintaining levels above $98,000 backed by strong buying momentum, the coin could rebound to about $106,000, which represents a key psychological resistance. On the flip side, should sellers dominate at the $98,000 threshold, there is a risk of further declines, potentially testing the $92,000 level.
BTC Sees Close to $450 Million in Exchange Withdrawals
In additional news, Bitcoin transactions recorded $442 million in exchange withdrawals over the last week. As per data from IntoTheBlock, the net outflow reached $70 million, with exchange deposits totaling $372 million.
Typically, higher outflows compared to inflows indicate a bullish trend, suggesting that investors are less inclined to sell, opting instead to transfer their assets into private wallets with anticipation of price increases. At the time of this report, BTC is trading at $102,269, reflecting a 1.94% drop over the previous day, while its daily trading volume has decreased by 12.58%, now valued at $44.44 billion.
Image credit: Depositphotos, chart courtesy of Tradingview