Bitcoin has faced noticeable volatility in recent days: a significant market rise was observed on Sunday, which completely disappeared on Monday.
Despite these fluctuations, hope for recovery remains, fueled by FOMO (fear of missing out) and investors driven by greed. These sentiments may play a crucial role in Bitcoin's price movement.
Bitcoin investors are optimistic.
The continued decline in exchange balances signals an accumulation pattern. Over the past week, investors have purchased over 27,976 Bitcoins worth over $2.88 billion. This has reduced the available supply to approximately 3 million Bitcoins.
The idea that Bitcoin has not yet reached its all-time high (ATH) encourages further investments, as many believe that current price levels represent an opportunity that will not last long. FOMO remains a significant driver as retail and institutional investors bet on Bitcoin's future potential. The IOMAP (In/Out of the Money Around Price) indicator suggests that Bitcoin has strong support in the range of $102,886 to $99,894, where investors have accumulated over 398,590 Bitcoins worth over $41 billion. This makes the region a strong buying zone, where many investors are holding their positions in anticipation of Bitcoin's next increase.
A drop below this support seems unlikely, as investors are waiting for a price increase rather than selling. In addition to a strong accumulation zone, the overall market sentiment is bullish. The current support at these levels reinforces the view that Bitcoin is poised to continue its upward trend. The price of Bitcoin may recover.
Bitcoin is currently trading at $102,907, slightly above the critical support level of $102,734. Despite today's drop of 3.3%, further price declines seem unlikely due to a strong demand zone just below this level. Buyers appear to be ready to step in at these price levels, indicating stability in the short term.
With Bitcoin briefly rising to $107,108 earlier today, it seems likely that the cryptocurrency will recover its losses. Accumulation by investors is expected to push Bitcoin higher, and it may once again surpass the $105,000 level, forming a consolidation above the support at $102,734. This would put Bitcoin on a path for further growth, bringing it closer to the ATH of $109,588, from which it is currently 6.5% away. However, the bullish outlook could be invalidated if long-term holders (LTH) decide to sell their positions to lock in profits. If this happens, the price of Bitcoin could drop below the critical support level of $102,734, potentially lowering it to the $100,000 range.#BinanceSquare #Write2Earn #crypto #Binance #bitcoin $BTC
