Bitcoin price has surged past the $95,000 level, maintaining a bullish trajectory with over a 3% rise in the last 24 hours. This move is accompanied by critical indicators pointing towards short-term bullish divergence, reinforcing optimism among market participants. The recent price action suggests Bitcoin is attempting to reclaim a vital Fibonacci level, signaling potential for further upward momentum.
According to data from Santiment, Bitcoin's Mean Dollar Invested Age (MDIA) has seen a significant decline since mid-October 2023. This metric, which measures the average age of coins in wallets, dropped from 637 days to 466 days—a 27% decrease—with 9% of that drop occurring in just the last three weeks.
This trend signifies that previously dormant coins are now being actively circulated, often interpreted as a sign of renewed market confidence. A continued decline in MDIA suggests sustained bullish momentum in the market, as more coins come into active trading.
Market analyst Josh from Crypto World stated that Bitcoin's overall outlook remains bullish, supported by a steady recovery trend despite occasional pullbacks. However, the asset faces resistance at the 16.8 Fibonacci extension level, located between $100,000 and $102,000. Breaking this barrier will be critical for further price gains.
Bitcoin’s recent price movements show its resilience around the $94,000–$95,000 range. After briefly dropping below this level, the cryptocurrency has regained footing and is testing this range again. If Bitcoin closes above $95,000 in the coming days, it could signal a stronger bullish continuation in the short term.
$95,000: A decisive break and close above this level could confirm short-term bullish momentum.
$100,000–$102,000: The next significant resistance zone, where a breakout could pave the way for higher targets.
$113,000: If Bitcoin surpasses $102,000, it could rally towards this psychological level.
While the outlook remains optimistic, Bitcoin could experience short-term corrections. Key support levels include:
$94,000: A critical zone for maintaining upward momentum.
$89,000: The next major support area, where buyers may step in if the price retraces further.
Moving Averages: Bitcoin has maintained its position above the 50-day moving average, signaling strong buyer support.
Volume Analysis: Trading volumes have increased alongside the price rise, indicating genuine demand behind the upward movement.
RSI Levels: The weekly RSI shows Bitcoin is approaching the overbought region, reflecting strong buying pressure but cautioning against potential corrections.
Bitcoin’s rally coincides with increased activity in the broader cryptocurrency market. Institutional investors are reportedly re-entering the market, with rising open interest in Bitcoin futures contracts. This trend suggests growing confidence in Bitcoin as a reliable store of value amid global economic uncertainties.
The macroeconomic backdrop has also played a role in Bitcoin’s surge. Concerns over inflation, combined with expectations of a more dovish monetary policy from central banks, have driven investors toward alternative assets like Bitcoin. This has reinforced its status as "digital gold."
Bullish Scenario: If Bitcoin breaks the $95,000 resistance and sustains momentum, it could target the $100,000–$102,000 range within the next week. A clear breakout above this zone could further propel the price toward $113,000.
Bearish Scenario: Failure to hold above $94,000 could lead to a retest of the $89,000 support zone. A sustained drop below this level may signal a deeper correction.
The declining MDIA metric suggests long-term bullish sentiment, as increased coin circulation often precedes significant price rallies. Additionally, the halving event scheduled for mid-2024 is likely to act as a catalyst, driving scarcity and upward price pressure.
Institutional adoption and growing interest in Bitcoin ETFs also bolster the case for sustained price appreciation. However, Bitcoin’s volatility remains a factor, requiring investors to exercise caution and diversify their portfolios.
Bitcoin price action above $95,000 reflects a healthy uptrend with strong support from technical indicators and market fundamentals. While resistance at $100,000 remains a key hurdle, the ongoing bullish divergence and increased market activity suggest that Bitcoin may continue its upward trajectory. Traders and investors should monitor critical levels closely, as the next few days could define the short-term direction for the world’s largest cryptocurrency.