Bitcoin’s recent price movements have reignited debate over its next big move, with the cryptocurrency hovering between key resistance and support levels.
The broader crypto market has surged 2.21% overnight, pushing the total market capitalisation to $3.24 trillion, while Bitcoin itself has recorded a 1.14% gain over the last 24 hours, trading with a volume of $34.27 billion.
Source: CoinMarketCap
Despite the short-term bullish trend, questions remain about whether Bitcoin can sustain this momentum or if a retracement is on the horizon.
Technical indicators suggest conflicting signals, with some pointing to an imminent rally towards $100,000, while others hint at a correction down to $92,000.
With macroeconomic factors, institutional interest, and on-chain data shaping the market outlook, Bitcoin’s next move remains uncertain.
Technical indicators highlight critical price levels
Bitcoin’s price action over the past month has been mixed, with a 4.21% gain despite a 1% decline over the past week. Its year-to-date (YTD) return stands at 5.24%, reflecting a slow but steady uptrend.
Key technical indicators show a divided market.
The Moving Average Convergence Divergence (MACD) remains in bearish territory, displaying red histograms, suggesting increased selling pressure.
At the same time, the 50-day Exponential Moving Average (EMA) is on the verge of a bullish crossover with the 200-day EMA, historically a signal for upward momentum.
If this crossover materialises, Bitcoin could test $100,000 in the near term, but failure to hold current levels could push it towards $92,000.
On-chain metrics also indicate shifting sentiment.
Whale accumulation has picked up in recent weeks, suggesting confidence among large holders, yet the exchange reserves have increased, indicating potential sell pressure.
The combination of these factors makes Bitcoin’s near-term trajectory highly uncertain.
Macroeconomic trends influencing Bitcoin’s price
Beyond technical factors, macroeconomic conditions are playing a crucial role in shaping Bitcoin’s price. The latest US inflation data has fuelled speculation about the Federal Reserve’s next move, with markets now pricing in a potential rate cut in mid-2025.
Lower interest rates historically boost risk assets, including Bitcoin, as investors seek higher-yielding alternatives.
Meanwhile, the US dollar index (DXY) has shown strength, which could weigh on Bitcoin’s price in the short term.
A stronger dollar often leads to downward pressure on Bitcoin, making the $100,000 target harder to reach.
However, if the dollar weakens amid dovish Fed signals, Bitcoin could gain the momentum needed to break past its all-time high.
Institutional activity remains a critical factor. Bitcoin ETFs have seen record inflows, with institutional investors increasing their exposure.
This demand could provide a strong foundation for Bitcoin’s next rally, provided broader market conditions remain supportive.
Bitcoin’s price trajectory
Bitcoin’s price movement in the coming days will depend on whether buyers can maintain the current bullish momentum.
If Bitcoin successfully clears $100,000, it could trigger a parabolic rise towards $105,000 and beyond.
However, failure to sustain gains above resistance levels could lead to a retest of $95,000, with a deeper correction potentially sending it to $92,000.
Short-term traders are likely to watch key support and resistance levels closely, as any decisive move could set the tone for the next major trend.
With Bitcoin at a crucial juncture, the coming weeks could determine whether it finally surpasses six figures or faces another sharp correction.
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