Ever since Bitcoin rebounded from a prolonged consolidation, the price has entered a bull run phase. Meanwhile, when the token surpassed the $100K milestone and marked new ATH above $109K, it seemed to be the peak of it. Moreover, the plunge that followed and the prevailing consolidation below the resistance raised the possibility of a probable bear market. However, the current market dynamics remain bullish, while the chart patterns suggest that token trading is under bullish influence.
Now the question arises: whether the Bitcoin (BTC) price rises above $98,000 or drops below $93,000?
The supply and demand dynamics have played a crucial role in Bitcoin’s future moves as well as in the market sentiment to some extent. As the price has remained consolidated within a range for a pretty long time, the supply wall has mounted on either of the sides to some extent. Therefore, this is expected to have a large impact on the upcoming price action. As per the data from Intotheblock shared by Ali, the tokens have reached one such price zone.
The above chart suggests the BTC price is facing a supply wall of 1.88 million BTC at $97,000, while support at $94,500 is backed by just 695,000 BTC. This is a huge imbalance among the buyers and sellers wherein the support does not appear to be quite strong enough. Therefore, it is likely to break this 3-week range and head probably towards the south.
Will Bitcoin (BTC) Price Drop Below $94,000 This Week?
Bitcoin price volatility has dropped to a large extent, which has kept the price concealed within a narrow range. It is believed that the US market session has been extremely weak compared to Europe & Asia, which has caused most of the ‘full retraces.’ that we have seen in the past few weeks. With the drop in positive sentiments, the BTC price continues to remain stuck within a narrow range, which has activated both bullish and bearish targets in the short term.
From a wider perspective, the Bitcoin price continues to trade within a parallel channel, while the price is failing to rise above average bands. While the bearish target at below $92,000 has been activated, there is some possibility of a bullish rebound as the Bull Market Support Band is about to undergo a bullish crossover, but the RSI trades within a bearish trend but holds above the support at 41.56.
Therefore, if the band undergoes a bullish crossover, a rise above the local resistance at $98,000 is mandatory. Otherwise, the Bitcoin (BTC) price may face rejection and drop, validating a fake breakout.
