Bitcoin Consolidates Near $88,000 as Price Eyes $98,000–$100,000 Zone

Bitcoin (BTC) is trading sideways after its upward movement. It is yet to be decided which direction to take. While some analysts feel that there is weakness in the price of Bitcoin, others feel that the critical level of support is being maintained.

At the time of writing, BTC is trading at $87,574, recording a 24-hour trading volume of $65.08 billion. Its total market value stands at around $1.75 trillion, while the price has slipped by 0.32% over the last 24 hours.

Source: CoinMarketCap

Bitcoin Eyes Next Major Move

Market observers have now noticed that Bitcoin has been moving sideways for the last month, causing market participants to wonder what the next significant market movements will be. CryptoPulse pointed out the breakdown from a rising wedge pattern in the weekly chart, with prices currently in a two-month range between $86,000 and $94,000.

Source: X

This is the result of weakening buying pressure, with attempts to propel BTC to higher grounds repeatedly stalled. CryptoPulse points out that while there might be a short-term bounce, BTC might first need to test the former wedge resistance, now at $98,000 to $100,000. Failure to do so might see the asset meet with rejection.

According to the analyst, the change in the outlook will only come if BTC manages to break and hold above $100,000 on the weekly charts. Until then, it is advisable to exercise caution, despite the price showing signs of moving back to upside momentum.

Also Read | Bitcoin Growth to Stretch Over 10 Years as Volatility Eases, Bitwise CIO Says

Long-Term Support Holds for Bitcoin

However, another analyst, GainMuse, presented a balanced perspective: Bitcoin is holding a long-term support zone, which is a positive sign. This analyst believes the current situation represents a compression forming a base.

Source: X

GainMuse added: “If buyers continue to absorb the selling pressure below the resistance level, BTC may begin to establish higher lows.” This typically indicates the building power, regardless of whether the markets seem inactive now or not.

While BTC is currently stuck in a range, the next few weeks may prove crucial. Whether it manages to move above or falls below will largely depend upon how it responds around the critical level of resistance.

Also Read | Bitcoin Price Analysis: BTC Consolidates Near $88K as Volume Signals Caution