Bitcoin dips below $100k as the cryptocurrency market faces a steep correction from the recent $108,000 high. Investors have become concerned with this downturn strengthening the unpredictable world of digital assets.

Analysts are closely watching for signs of recovery or more decline when the $100k level is passed, which is considered a psychologically meaningful barrier at this level. Such performance of Bitcoin at this point could have a huge bearing on market sentiment and trading behaviour.

Key-Takeaways:

• Investor selling at the resistance between $98,000 and $100,000 continues to limit upward price movement, driving Bitcoin lower below $100k.  
• Since Bitcoin went below $100k, over 48,000 BTC withdrawals go through and show less pressure to sell and less confidence in the crypto space.

Strong Resistance is Created by Supply Wall

Bitcoin’s present price action relies strongly on the enormous supply wall between $98,000 and $100,000. It has been a large-scale accumulation in this range that has formed into a very solid resistance zone, which Bitcoin needs to break through to escape lack of momentum.

As it turns out, based on market data, many investors that have purchased Bitcoin at these levels are holding onto their position. Whenever the price nears $100,000, this behavior causes selling pressure, which prevents the price from moving any further upward.

It’ll probably take a surge of buying or a shift in sentiment in the market. Until then, Bitcoin’s price may trade flat beneath this important psychological barrier.

To add to the technical picture, the 50-day moving average around $97,000 has become a key support level on which traders are watching. Close inspiration above this moving average could be the end of the current correction phase and pave the way for resuming bullish momentum.

Exchange Withdrawals Signal the Long Term Confidence

Recent headlines are focused on Bitcoin dips below $100k, but there are some positive developments in the market. In the last week, over 48,000 bitcoins—worth around $5.1 billion—have been pumped from exchanges.

That noted reduction in exchange balances signals that investors are remitting their assets to private wallets, indicating lower short-term selling pressure. In fact, such behavior is showing a level of confidence in Bitcoin’s long-term potential.

These withdrawals indicate a move toward accumulation; however, the $100k level is still a key resistance point. Such a trend could lead to a stronger price recovery when sentiment stabilises in the market.

When Bitcoin leaves exchanges, this is often a bullish sign that bigger holders of Bitcoin are thinking more long-term and not in their desire to sell fast. Historically, it’s typically wise to follow such sizable withdrawals with periods of price appreciation.

However, the picture of Bitcoin’s short-term trajectory painted by the current market structure is quite mixed. The potential head and shoulder pattern has been flagged by technical analysts who predict a correction for Bitcoin to around $78,000 if this plays out.

But this bearish arrangement could be unwound by a decisive increase above $100,000. If a strong breakout occurs at this level, it will change the trend and probably trigger renewed bullish sentiment.

Bitcoin continues to stand in between these two signals for now, and traders will watch for key price points closely. The next move could set Bitcoin’s direction on either side of the table.

From the bulls view, the market has set several key levels that are being defended on the support side. Immediate support lies at $98,500, stronger at $98,000. If these levels prove not to be holding, there will be another key support protective level found at $96,200 with further ironing at $95,500.

The market is currently at a pivotal point as Bitcoin dips below $100k, where conflicting signals from technical indicators and onchain metrics. For Bitcoin, breaking through the supply wall at $100,000 is its first hurdle, and being able to hold above the 50-day moving average is crucial for stability.

Bitcoin has recently seen exchange withdrawals appear to indicate less selling pressure, and buyers now have to step in to push BTC past this key resistance. Lacking this much momentum, the market may continue to consolidate below this psychological barrier.

A decisive move above $100,000 would certainly be a bullish move, while failure to make the move may leave Bitcoin exposed to further corrections. The next breakout will determine the market in the coming weeks, and traders are watching closely.

Conclusion

As Bitcoin dips below $100k, traders should look out for the weekly close and volume. This outcome could set Bitcoin’s trend and may impact the wider crypto market as we move further into the weeks ahead.