Bitcoin (BTC) Price Tests Lower Demand Levels, Market Sentiment Divided

Bitcoin has dropped below the $100K mark, causing concern among investors. Since mid-January, BTC has been moving sideways.

Bitcoin price dropped below the $100K mark on Monday, as the world’s largest cryptocurrency by market capitalization continued to trade within a narrow range.

Since mid-January, BTC price has been moving sideways, trading between all-time highs (ATH) and the $97,750 level.

The price struggles to find a clear direction, making the next few days crucial for determining Bitcoin’s next move.

Bitcoin Price Pulls Back from ATH

After hitting a new ATH of $104,000 on January 19, Bitcoin price has been pulling back. The coin dropped to lows of $97,750 on Monday, marking a decline of over 6% from the recent highs.

Bitcoin price has been trading within a tight range for the past few weeks. The coin has failed to break above the $104,000 level or below the $97,750 zone.

This consolidation has left many investors wondering whether BTC price will continue to rise or if it has already peaked.

Market Sentiment: Bulls vs. Bears

The crypto market is divided over Bitcoin’s next move. Some investors believe that the recent pullback is a normal correction before Bitcoin moves higher.

They expect BTC to reach $110K and beyond. Others think Bitcoin has already peaked and may enter a long-term correction.

“Bitcoin is still in a bull market, and these pullbacks are to be expected,” said one bull.

“The next few days will be crucial in determining whether Bitcoin will continue to rise or if it will correct further. I’m personally expecting BTC to reach $110K before any major correction.”

On the other hand, some bears believe that Bitcoin is already in a bubble and that the recent pullback is a sign of the bubble bursting.

They expect BTC to correct to $50K or even lower in the coming months.

“Bitcoin has already peaked, and this pullback is just the beginning,” said one bear.

“The crypto market is in a bubble, and it’s about to burst. I expect Bitcoin to correct to $50K or even lower before this is over.”

On-Chain Metrics Show Moderate Optimism

On-chain metrics provide a different outlook on Bitcoin’s current state.

The adjusted net unrealized profit/loss (aNUPL) indicator, which measures the unrealized P&L of all Bitcoin holders in relation to the realized cap, suggests that Bitcoin is in a healthy zone but not yet in a bubble.

This indicator is used to gauge the overall market sentiment and to identify potential turning points in the Bitcoin bull cycle.

According to the aNUPL indicator, Bitcoin is currently in a strong phase, but it has not yet reached overheated levels.

Bitcoin Price Action: Key Support Levels

Bitcoin price is now testing lower demand levels, with the next key support being at $97,500.

For a bullish recovery, Bitcoin must quickly reclaim the $100K level. A strong move above this level could trigger a rally to new highs.

However, if the bulls fail to step in and buy the dip, BTC could see more selling pressure, which may lead to a drop to the next support level at $95,000.

What’s Next for Bitcoin?

Bitcoin price remains in a critical phase, with the next few days being important for determining the coin’s next move.

The market is highly volatile, and traders are watching the price action closely. If BTC stays above the $97,500 level, it could set up for a recovery.

But if the selling pressure increases and the coin drops below this zone, the price may continue to fall before finding support at lower levels.

Bitcoin price is now at a crossroads, and the next move will be crucial for determining the coin’s future direction.

Investors should prepare for more price swings in the coming days as Bitcoin decides its next move.