Bitcoin has stayed above the level of ninety thousand for a few days now. This has given many people a small feeling of trust again after the sharp fall that took place before. The market is still not relaxed though because the chart shows some clear barriers that Bitcoin must cross before any real and steady rise can begin.
The first big problem is the supply sitting in two main zones. A supply zone is a place where many sell orders wait. When the price enters that area it slows down because a lot of people try to sell at the same time. The first zone sits between ninety three thousand and ninety six thousand. The second zone sits between one hundred three thousand and one hundred eight thousand. These are heavy areas on the chart because the price has reacted around them many times. If Bitcoin cannot break through the first zone it may drop under ninety thousand again. If it fails again later and falls under eighty two thousand it can start a deeper down trend.
Even if Bitcoin fights its way through both zones it still has one more step to complete. There is a level called the short term holder cost basis. This level shows the average price paid by people who bought Bitcoin in the last few months. When the price stays above that level it means most short term holders feel safe because they are not sitting in a loss. When the price stays under that level they feel pressure and many of them sell which pushes the price down again. This level right now is around one hundred nine thousand eight hundred. So even after passing one hundred eight thousand Bitcoin needs to rise above this point for stronger support.
There is also some pressure from global markets. A well known fear index has been rising. When this index rises it often means that markets around the world are facing stress. When stress rises people often pull money out of risky assets. Bitcoin is seen as a risk asset so it can feel the effect right away. Some analysts believe that big tech stocks are stretched which means they might fall. If they fall hard that fall can spread into crypto which can push Bitcoin into a clear bearish trend.
Still the current picture is not all bad. Bitcoin has held the ninety thousand line which shows that buyers are still active. Many people are also waiting for lower levels to buy again. Strong hands still believe that Bitcoin is in a long term growth cycle even if the short term looks rough. The price only needs a clean break above the first two zones and then a move above the short term holder cost basis to start a healthy climb.
The next few days will show how strong the buyers are. If Bitcoin rises and closes above the supply areas the mood can improve fast. If it falls under the key support levels the market may see more red candles. For now Bitcoin stands in the middle and waits for a clear push from either side.
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