Bitcoin Nears $100K, Will It Break Through or Face a Sharp Correction?

Key Insights:

• Bitcoin nears $100K resistance, signaling a potential breakout or sharp correction amid heightened volatility and strong market activity.

• Long-term bullish momentum intact as Bitcoin consolidates near $97K, with support zones at $96K, $89.5K, and $79.7K closely watched.

• Historical trends suggest $100K as a pivotal level, with targets above $120K if breached, or a retest of lower support levels if rejected.

Bitcoin's price is at the cusp of breaking the $100,000 mark, a level critical for sustaining bullish momentum. It recently spiked to $99,477 before retreating slightly to $97,924.

This sharp move triggered market volatility, with liquidations impacting both long and short positions. Despite the turbulence, the broader trend remains bullish, supported by strong volume during upward rallies.

Resistance at $100K Sparks Key Market Moves

Breaking $100,000 has proven challenging for Bitcoin. Strong selling pressure emerged as the price approached this level, leading to a retracement near $97,844.

Analyst Michaël van de Poppe highlights $96K as a critical threshold for further corrections, suggesting that breaking below it could initiate a flash crash.

Consequently, support zones around $89,584–$85,327 and $79,743–$71,736 could attract substantial buyer interest.

Source: Michaël van de Poppe

Moreover, the Relative Strength Index (RSI) suggests reduced momentum after recent overbought conditions.

This signals a potential consolidation phase before any significant breakout. Additionally, Bitcoin remains within an upward-sloping channel established in 2019, indicating resilience despite short-term fluctuations.

Parabolic Growth in Long-Term Trends

Since 2020, Bitcoin's price has experienced distinct phases of parabolic growth. The first rally pushed prices from $10,000 to $60,000.

Similarly, the ongoing rally, which began after breaking $60,000 in 2023, brought prices near $100,000. The slope of the current rally mirrors past trends, showcasing consistent bullish acceleration during cycles.

Besides, historical resistance of nearly $65,000, a key level in previous consolidations, now acts as strong support. This shift underscores Bitcoin's ability to establish higher lows and sustain long-term growth.

However, with the price nearing the upper boundary of the ascending channel, resistance remains formidable.

Source: dave the wave

Outlook: Can Bitcoin Sustain Momentum?

The next goals, in line with long-term forecasts, are above $120,000 if Bitcoin is able to break above $100,000. A retest of support zones might occur, though, if this resistance is not overcome.

Furthermore, as increased volatility tends to shake away weaker hands, wider market participation is still necessary to maintain rallies.

The price movement of Bitcoin highlights its tenacity in the face of market difficulties. Another period of parabolic rise might begin if $100,000 is broken. A retracement, on the other hand, can challenge important support and present chances for accumulation.