Bitcoin (BTC) price returning to $100,00 could prompt "short-term consolidation," analysts warn

Bitcoin (BTC) price returning to $100,00 could prompt “short-term consolidation,” analysts warn, though the long-term outlook for the cryptocurrency remains positive.

As Bitcoin (BTC) approaches the crucial $100,000 psychological level, analysts at Matrixport anticipate a period of short-term consolidation. However, they emphasize that the cryptocurrency's long-term uptrend remains intact, despite the potential for technical levels to trigger profit-taking.

While Bitcoin's journey to new all-time highs is closely watched, analysts also highlight gold's ascent to fresh peaks as an indicator of the increasing demand for alternative assets.

"The shift in sentiment that began in the summer of 2023, when gold broke above $2,000, has boosted the outlook for Bitcoin, which is increasingly seen as a form of digital gold," the Matrixport analysts noted.

"Regardless of the prevailing narrative, both gold and Bitcoin are poised to grow in importance as alternative assets gain momentum. While key psychological levels-such as gold at $3,000 or Bitcoin at $100,000-could trigger short-term consolidation, the broader uptrend likely remains intact."

According to crypto.news's earlier report, Bitcoin faces two potential risks and two opportunities.

Firstly, there are signs that investor sentiment remains fearful. Although the fear and greed index has moved out of the extreme fear zone (18), it still sits in the fear zone at 22. Historically, Bitcoin and other cryptocurrencies perform better when the index is in the greedy zone.

Secondly, Bitcoin has formed a death cross as the 50-day and 200-day Weighted Moving Averages crossed, signaling potential technical weakness. However, it's worth noting that the MACD indicator has started to flatten out, which could indicate a potential bottom in the making for Bitcoin.