After crashing below the $115,000 territory over the weekend, Bitcoin has reached an important level that could determine where the crypto market is headed next. Eventually, it comes down to the support levels and how much buying is going on to actually counter the effects of massive sell-offs that continue to drive down the price. However, if bulls are able to hold, then it could suggest there is enough momentum behind the cryptocurrency to push for new highs.
Why Bitcoin Must Hold $100,000
In an analysis, crypto and market analyst MasterAnanda has pointed to the Bitcoin price already solidifying support that could help end the downtrend. Pointing to the current market decline, the analyst explains that the price is actually only down 8% after hitting its $123,000 all-time high back on July 14. This retrace is nothing out of the ordinary, which MasterAnanda refers to as “part of the normal workings of the market.”
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The current Bitcoin price fluctuations have not raised any alarms, as corrections are expected and are needed for the price to continue to rally. As the analyst explains, such fluctuations usually see the cryptocurrency reach new higher highs over the longer timeframe.
Already, there is a lot of support for the Bitcoin price above the $110,000 level. This shows that while bears are pushing down hard, buying is still soaking up the dumped supply in the market. The analyst points to this support level as important, but highlights an even more important and stronger support level lying just above $100,000.
This $100,000 level has remained a psychological level since it was first hit back in December 2024, becoming the level to hold if the market were to continue its uptrend. The crypto analyst explains that as long as the Bitcoin price remains above $100,000, then the bulls will continue to be in control.
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“After a few weeks, or several months, exactly as it happened last time, Bitcoin will go up. So you can expect retraces and corrections, but this is only short-term long-term we grow,” Master Ananda stated.
However, there is still the possibility that the price does fall below the $100,000 level. In this case, it would mean an invalidation of the bullish thesis, and the analyst revealed that the short and mid-term analysis would need to be revisited and updated if this happens.
Featured image from Dall.E, chart from TradingView.com
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