After a short-term strong live demonstration, when the price returned as high as $ 116,000 after the damage of the forced Flash, the price of Bitcoin maintained a renewed trend below the third week of October. Alarmingly, on-chain data has revealed a hopeful but uncertain picture of the cryptocurrency’s future.
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$100,000 appears as an important support point
In the latest X posted on Friday, cryptoquant analyst Julio Moreno shares details on his technical analysis of Bitcoin’s price action. Moreno highlighted that the most recent incident of Bitcoin under which there was a formation of prices of $ 120,000-$ 108,000 that caused attention to be paid to $ 100,000 as the next leading level.
The Crypto analyst defended his report with a Bitcoin trader who accumulated metrics, which measure the lower limit of the cost of on-chain acquisition for a short period of time. Simply, this metric helps to identify the price that will act as a support in situations where the price faces a correction movement.
From the chart shared above, currently $100.9k is currently the lower limit of the average trader found in the price, one expected by Moreno as a support point.
In addition to the technical analysis and on-chain activity, $100,000 also has an important level psychologically, because it serves as a symbol where Bitcoin enters the value of six details. If the price of Bitcoin were to fall to levels as low as $100,000, strong psychological support by market participants would restructure its price action. Because of this, the cryptocurrency cryptship can see a temporary relief from the oppression of beagesh right now.
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What’s next for Bitcoin?
As mentioned before, $ 100,000 stands as an important price level for Bitcoin, with logic and technical analysis combined to strengthen its importance.
Edited in Moreno’s post is the content that if the $100,000 support was supposed to be emotional, Bitcoin’s Fliach Umentwe
On the other hand, the failure of this important level can carry serious consequences, especially for short-term owners. A break in this psychological support can cause a sharp feeling to change among the participants of the Bitcoin market, causing them to sell their holdings in order to reduce losses or escape from certain profits.
Interestingly, the 365-day moving average sits near the $100,000 Psychological Support. Basically, the 365-day maine is a technical indicator that shows the average price of Bitcoin over the past year. By extension of its main function, the indicator is used to guide the direction of Bitcoin in the long term.
If Bitcoin therefore has to slide below its 365-day marmate, it would be a sign that the digital asset is about to take a long-term trajectory, a sign that could prioritize a major price correction. As of this writing, Bitcoin is worth about $107,400, which shows a 7-day loss of more than 5% of its value.
Featured image from flickr, chart from tradingview
