Bitcoin (BTC) Struggles to Cross the $100,000 Mark Due to Profit-Taking, Derivatives Data, and Historical Trends, Analysts Tell Benzinga

Bitcoin is currently trading at $94,870, down 0.4% for the day, according to data from CoinGecko.

Bitcoin BTC/USD encountered resistance at the $100,000 level on Monday, pausing its recent rally. Several analysts shared their insights on the price movement and the factors impacting Bitcoin's next move.

Bitcoin is currently trading at $94,870, down 0.4% for the day, according to data from CoinGecko.

Here's what analysts are saying about Bitcoin's struggle to cross the $100,000 mark.

Consolidation Phase, Not Weakness

Avinash Shekhar, co-founder and CEO of Pi42, told Benzinga that Bitcoin's pullback from recent highs is part of a consolidation phase rather than a sign of weakness.

"Despite the pullback, demand in derivatives markets remains robust, with traders paying a 17% annualized premium for leveraged BTC positions," he said.

"The Bitcoin options markets also show confidence, as options are trading at an 8% discount, indicating reduced hedging demand. Funding rates for perpetual contracts also remain neutral at 1.4%, indicating a balanced leverage environment."

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Profit-Taking, Resistance Levels

James Toledano, COO of Unity Wallet, attributes Bitcoin's dip to profit-taking following its $25,000 surge in the past month.

"The presence of put options between $98,000 and $99,000 has also created resistance levels," he said.

"Profit-taking has likely exerted downward pressure on the price. However, it's crucial to note that Bitcoin's historical patterns show significant corrections after rapid ascents."

Toledano adds that previous cycles, such as 2017 and 2021, saw Bitcoin's steep gains followed by sharp declines of up to 70%.

"While this doesn't guarantee an imminent correction, it does suggest that the market could be due for a pullback after such a rapid rally from recent lows."

Altcoin Season, Institutional Interest

Arthur Azizov, CEO of B2BINPAY, observed that Bitcoin has been trading within a tight range of $91,000 to $99,000, with the $100,000 mark acting as a psychological barrier.

"Interest in the market remains strong, driven by altcoin season and substantial inflows from institutional and retail investors," he said.

"According to CoinMarketCap's Alt season Index, the market is in alt season territory, with a score of 83."

"We could see a potential pullback to $82,000, but overall, the market is still bullish."

Technical Analysis: Consolidation, Neutral Outlook

Technical analysts at Fairlead Strategies maintain a neutral short-term outlook for Bitcoin, based on indicators such as the daily MACD and DeMARK signals, which are pointing to consolidation.

"Initial support is now seen at $80,400 with the 100K round number acting as key resistance," they said.

"Long-term momentum is still strong, supporting a bullish outlook beyond the current consolidation phase."

"All signs hint at Bitcoin being in its consolidation phase rather than a weakness phase," Shekhar further said.

"Consolidation is a necessary part of any bull market and typically manifests as a period of sideways price movement or a range after a strong directional move."

"During consolidation periods, technical indicators such as the MACD and DeMARK often flatten out, indicating a period of indecision or digestion in the market structure."

"Typically, consolidation periods are followed by a continuation of the primary trend, which in this case would be further upside price action."

Toledano adds that while corrections are common after rapid gains, they don't necessarily signal the end of Bitcoin's bull run.

"It's important to remember that corrections are a natural part of any bull market and not necessarily a cause for concern unless they lead to a complete reversal of the recent gains," he said.

"If Bitcoin can continue to hold support at key levels like the 200-day moving average, the bull run could still continue despite any pullbacks."

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