Bitcoin is at a crucial juncture, consolidating below the $100K mark and above the $95K demand level. Market sentiment remains divided, with bulls and bears struggling to gain traction.
Traders are reducing leverage on major exchanges, signaling caution in the face of uncertainty. This decrease in market volatility could mean subdued price action in the short term.
Analysts closely monitor Bitcoin’s movement, awaiting a breakout above the $100K supply zone or a breakdown below crucial demand around $95K. Top analyst Axel Adler believes this reduction in leverage signals a more cautious approach among market participants, potentially leading to a calm weekend in terms of price volatility.
The sentiment remains mixed, with many traders speculating that Bitcoin is gearing up for a significant move. Bulls have managed to keep the price above key support levels, while bears are keeping it below the psychological $100K mark, creating a deadlock.
A breakout above $100K would signal a potential recovery rally into higher price ranges. However, if indecision persists and bears push the price lower, Bitcoin could face a breakdown below key support at $94,000. This level has historically served as strong support, making its defense essential to maintain Bitcoin’s long-term bullish structure.
The coming days will be critical in determining whether the market resumes its bullish trend or enters a prolonged consolidation phase. Traders and analysts must act decisively to break this current stalemate and define Bitcoin’s next major move.
Source: https://bitcoinist.com/bitcoin-leverage-reduced-on-major-exchanges-calm-before-the-storm