Bitcoin Bull Market at Risk if $97,000 Support Fails to Hold: Analyst

Bitcoin is now retesting the psychological $100,000 price level again after a 2.22% decline in the past 24 hours. Notably, Bitcoin recently rebounded around an order block at $99,200 in the past 24 hours as it continues to trade with intense volatility. 

Meanwhile, crypto analyst Ali Martinez has pointed to $97,190 as a key support level, stressing that Bitcoin must stay above it to maintain its bullish trajectory. This insight comes amidst sharp price swings that have tested investor sentiment, but optimism remains strong as data indicates many traders continue to bet on Bitcoin’s upward trajectory.

Bitcoin’s Key Support Level Identified At $97,190

As Martinez noted, $97,190 is one of the most critical support levels for Bitcoin, and holding above it is crucial to sustaining the bull market. This insight is backed by data from on-chain analytics platform IntoTheBlock. Particularly, the data is revealed through the In/Out Of Money Around Price metric from IntoTheBlock, which tracks the number of addresses making or losing money at the current price of a crypto asset. 

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In the case of Bitcoin, about 73% of addresses that bought Bitcoin at the current trading range are in profit. A significant portion of these, approximately 1.45 million addresses, bought Bitcoin between $95,727 and $98,719 at an average price of $97,190. These addresses collectively hold about 1.36 million BTC around this level, making it one of the most densely concentrated areas of holdings in the current cycle.

Given this concentration of holdings, Bitcoin must maintain its position above $97,190 to preserve its bullish momentum and keep sentiment positive among traders. A break below this level could push many of these holders toward break-even, increasing the likelihood of panic selling. This could, in turn, trigger further downside pressure and create a cascading effect on the Bitcoin price.

Image From X: Ali_charts

Binance Futures Data Shows Strong Bullish Sentiment

Despite concerns surrounding Bitcoin’s ability to maintain its support, market sentiment among traders remains largely optimistic. Notably, open positions on Binance, the world’s largest crypto exchange, show that a significant majority of traders continue to bet on further upside.

According to data from Coinglass, 60.94% of traders on Binance, the largest crypto exchange, with open Bitcoin futures positions are betting on the upside.

Further reinforcing the bullish outlook, Martinez also pointed to a buy signal from the TD Sequential indicator, which has appeared on Bitcoin’s four-hour chart. This technical tool has been instrumental in identifying trend reversals throughout this cycle, often preceding notable price recoveries.

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If the pattern holds true again, Bitcoin could experience renewed buying pressure in the coming days, potentially setting the stage for a retest of the $106,000 level.

At the time of writing, Bitcoin is trading at $99,403, down by 2.35% in the past 24 hours.

Featured image from Neon Dreams, chart from TradingView