Currently, the BTC fluctuation around the level of 95-98k could be a sign of one of two scenarios:
1. Bait (Bull trap): If the trading volume is low and there are no clear positive news, it is likely that this is a "trap" to attract retail investors to participate, before the price drops sharply. This often happens when sharks want to liquidate or manipulate the market for profit.
2. Accumulation to break the threshold (Breakout): If the trading volume gradually increases and there is support from factors such as good news about Bitcoin or overall growth of the crypto market, this could be an accumulation phase before BTC breaks the resistance level of 98k and moves towards the milestone of 100k.
Further analysis:
The current 98k level acts as a strong resistance. If the price surpasses and maintains above this level with high trading volume, the likelihood of rising to 100k is very high.
If it cannot break through and the price turns down below 95k, then it is likely the market will continue to adjust downwards.
Strategy:
If you are a long-term investor: Do not worry too much about these small fluctuations, focus on the long-term trend.
If you are a short-term trader: Pay close attention to resistance/support levels, trading volume, and other market signals (RSI, MACD, news). Set a tight stop-loss to minimize risk.
What are your thoughts on this situation? Do you want to analyze further?
