Data from Glassnode indicates price compression between $111,000 and $117,000 zones.
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Bitcoin’s price is currently trading around $112,637, showcasing a sideways trend amid anticipation of the Federal Reserve’s FOMC meeting and the subsequent interest rate decision. The leading cryptocurrency recently faced selling pressure near $116,000 and then rebounded from $112,500. Analysts agree that as long as the price remains above $112,000, the bullish outlook is maintained.
ContentsKey Threshold at $120,000 May Fuel New GrowthSupport Zones and Market Dynamics in Balance Key Threshold at $120,000 May Fuel New Growth
Crypto analyst Ali Martinez suggests that surpassing $120,000 could propel Bitcoin’s price up to $143,000. Based on long-term price bands from blockchain data, he emphasizes that $120,000 is a critical transition point. If this level is breached, it signals entry into a territory with historically lesser trading activity, accelerating upward momentum.
In Martinez’s model, price bands resemble highway lanes. Once the band around $120,000 is crossed, there’s “open space” up to the $143,000 band. The analyst underlines that this isn’t a target but rather an area where technical resistance could be minimal.
Support Zones and Market Dynamics in Balance
Another analyst, Michaël van de Poppe, views the recent pullback as a normal correction, not a trend breakdown. In his medium-term chart, $112,000 is a support, while the $115,600-$116,200 range acts as short-term resistance. He opines that the current movement is a healthy rest phase as the market tests the bottom.
Data from blockchain analytics platform Glassnode supports this view. The company notes that significant buying occurred around $111,000, with increased selling near $117,000. This distribution has led to price compression within a narrow range, indicating that a decisive move beyond the $111,000-$117,000 band could establish a new direction.
In summary, Bitcoin’s price movement above critical levels indicates potential further gains or corrections. Market analysts provide insights into these dynamics, looking at underlying support and resistance zones. The coming decisions and trends will be crucial in guiding Bitcoin’s short-term trajectory.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
