Why Bitcoin Failed Rebound to $100,000 Is Risky
On December 25, the price of Bitcoin (BTC) attempted to regain the $100,000 milestone, hinting at the possibility of a “Santa Claus rally.” However, the rally faltered and fell short of its target. Bitcoin’s failed rally has short-term holders questioning the likelihood of a near-term recovery.
Will cryptocurrency prices continue to fall below six figures?
Sentiment around Bitcoin is bearish
Bitcoin fails to rebound to $100,000, bringing its price below $97,000 and negatively impacting its market dominance. But the bearish sentiment doesn’t stop there.
According to data from IntoTheBlock, the Addresses by Holding Time metric, which tracks the activity of Bitcoin holders who have held the cryptocurrency for 30 to 365 days, showed a significant decline last week.
This group is often referred to as short-term holders and plays a key role in reflecting market sentiment. An increase in this group usually indicates increasingly optimisticbut recent declines suggest these investors’ confidence is waning.
If this trend continues, it may continue Bitcoin value faces downward pressure In the short term.
Another indicator reinforcing this sentiment is Short-Term Holders – Net Unrealized Gains and Loss (STH-NUPL). STH-NUPL measures the behavior of investors who hold tokens for less than 155 days.
Through this data, we can determine whether short-term Bitcoin holders are optimistic, fearful, or greedy. According to Glassnode, the indicator has dropped to the hope or fear zone (orange), indicating that investors are skeptical of a significant BTC rally. If this remains the same, Bitcoin may struggle to attract enough demand to push up prices.
BTC Price Prediction: What’s next for sub-$90,000?
On the daily chart, Bitcoin Price Faces Resistance $99,332. This hurdle is one of the reasons why the cryptocurrency failed to rebound to $108,398. Amid this resistance, Bitcoin’s failed rally is likely to continue in the short term.
Additionally, the Relative Strength Index (relative strength index) has fallen below the 50.00 neutral point. This drop indicates that Bitcoin’s momentum has turned bearish. If this situation continues, then the coin has the potential to drop to $85,851.
However, if Bulls help BTC break above After the $99,332 resistance, the trend may change. In this case, Bitcoin price could approach $110,000.
Disclaimer
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