With Bitcoin (BTC) seemingly struggling to breach the $100,000 resistance, technical indicators point to a possible incoming correction.
Indeed, there was general market euphoria after Bitcoin hit a new record high above $99,000. The markets were waiting for the asset to clinch the six-figure valuation, supported by strong fundamentals such as sustained buying pressure and post-election optimism.
Now, Bitcoin is presenting a sell signal based on the TD Sequential indicator on the 12-hour chart, suggesting the asset faces the risk of plunging below the $90,000 mark, according to analysis shared by Ali Martinez on November 23.
In this case, the key Fibonacci retracement levels show potential downside targets at $91,583 or as low as $85,610.
However, not everything is gloomy for Bitcoin, as the maiden cryptocurrency has a chance to invalidate this signal. According to the analyst, the bearish signal will fade if Bitcoin manages to close above the critical resistance level of $100,535.
Bitcoin’s bearish outlook emerging
Elsewhere, Scott Melker, host of The Wolf of All Streets, highlighted the growing possibility of Bitcoin correcting below the $90,000 mark in an X post on November 2024.
He noted that the flagship cryptocurrency is exhibiting signs of a potential local top, with significant bearish divergence forming alongside an overbought RSI on multiple timeframes. Historically, such setups often precede price corrections, though no indicator guarantees outcomes.
In the short term, Melker noted that the most likely pullback zones are projected around the low $90,000s to high $80,000s.
“Significant bearish divergence with overbought RSI on most time frames. Usually a clear signal of a local top, at the very least. <…> Most likely place for a pullback is the low 90s or high 80s,” he said.
He advised investors to remember that Bitcoin’s previous all-time high of $74,000 remains untested as support, which is worth watching in the meantime.
Meanwhile, on-chain metrics suggest a potential sustained correction for Bitcoin below the $100,000 mark. There are growing signs of spoofing on trading platforms, with large walls of sell orders (ask liquidity) being strategically placed to push the market lower toward support levels.
This has created a bearish sentiment, as these walls are often used to manipulate short-term price movements, contributing to the volatility below $100,000.
Amid the current market momentum, the general sentiment remains bullish on Bitcoin, hitting the next $100,000 resistance despite uncertainty regarding the asset’s next move after this target.
While some anticipate a sharp correction, other analysts maintain that Bitcoin will likely target as high as $150,000.
For instance, Caleb Franzen, founder of financial research resource Cubic Analytics, stated on November 23 that the asset could target $175,000 by 2025, noting that the current bull market is “right on schedule.”
On the other hand, technical indicators and historical price movement suggest that the maiden digital asset might target the $135,000 level in December 2024.
Bitcoin price analysis
Bitcoin was trading at $97,390 by press time, having plunged by about 1.1% in the last 24 hours. On the weekly chart, BTC is up over 7%.
In conclusion, Bitcoin faces potential short-term corrections, but the overall market sentiment remains bullish on claiming the $100,000 mark. However, with technicals pointing to a possible pullback, bulls must strive to sustain the asset’s valuation above the $97,000 resistance.
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