Bitcoin (BTC) Journey to Reclaim the Psychological $100K Price Level Encounters Stiff Resistance

Bitcoin's [BTC] journey to reclaim the psychological $100K price level has encountered a stiff resistance. At press time, the price hovered near

Bitcoin’s [BTC] price encountered a stiff resistance at press time, as it hovered close to a key pennant supply zone, ranging between $98K and $100K.

This key resistance zone posed a challenge for the bulls, especially considering that short position takers were defending it vigorously.

Breaking through this resistance level was crucial for Bitcoin to continue its upward trajectory and avoid a potential bearish reversal.

Bitcoin’s price chart suggested a possible head-and-shoulders pattern, as highlighted by a renowned analyst on X.

If confirmed, this bearish setup could push the price down to the $78,000 region.

Such a correction would align with technical expectations, given the pattern’s historical accuracy.

However, the pattern remained invalidated until a decisive break below the neckline.

For the bulls, a strong daily or weekly close above $100K was critical.

This would invalidate the bearish outlook and set the stage for Bitcoin to explore new highs.

Bitcoin exchange reserves have seen a consistent decline, signaling that fewer tokens are available for sale.

This suggests that market participants are increasingly opting to hold their Bitcoin, hence reducing the king coin’s selling pressure, according to on-chain metrics from CryptoQuant.

Adding to this, exchange inflows—a key metric for assessing potential selling activity—have been steadily decreasing since the 30th of December.

The reduced inflows reported by CryptoQuant suggest that less Bitcoin is being transferred to exchanges, which further supported its bullish outlook.

As the battle between Bitcoin’s bulls and bears intensifies, the king crypto remained trapped beneath the $100K resistance level.

A breakout above this key resistance level could set the stage for further gains. However, failure to do so might validate the bearish head-and-shoulders pattern.

Despite this technical uncertainty, on-chain data paints a bullish picture. Reduced exchange reserves and inflows suggest a shift in sentiment.

While some traders may be looking to cash out at higher levels, others appear more confident in Bitcoin’s long-term prospects than shorting their existing positions.

Bitcoin’s next move will majorly rely on its ability to overcome the $100K resistance.