Bitcoin Holds Above $104K: Bulls or Bears in Control?
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Bitcoin is currently trading just above the crucial $104,000 support level, exhibiting resilience amidst geopolitical turmoil stemming from escalating tensions in the Middle East. The recent attacks between Israel and Iran have increased market volatility, yet Bitcoin has shown remarkable strength, only dropping about 5% from its all-time high of $112,000. Analyst Ali Martinez points to the $104,124 level as a key support zone, coinciding with a significant concentration of Unspent Transaction Outputs (UTXOs), suggesting substantial buyer interest at this price point. Holding above this level could signal a renewed upward trend, potentially leading to further price discovery. Conversely, a break below this support could trigger a deeper correction, with the next significant support level around $97,405. The current price consolidation between approximately $103,600 and $109,300 indicates a critical decision point, with the convergence of 50, 100, and 200-period Simple Moving Averages (SMAs) just above the current price adding to the uncertainty. A decisive break above $106,800 could reignite upward momentum, while a fall below $104,500 could expose Bitcoin to further downside risks. Volume remains relatively low, suggesting a cooling of panic selling. The interplay of geopolitical events, macroeconomic factors like oil prices and bond yields, and Bitcoin's on-chain data will be crucial in determining its short-term trajectory. The market awaits a clear breakout, either to new highs or a more substantial correction, making this a pivotal moment for Bitcoin's price action. The situation is further complicated by uncertainty about the overall market's direction, with analysts expressing differing views on whether a bullish breakout or a bearish correction is more likely.
(Source: https://www.newsbtc.com/bitcoin-news/bitcoin-tests-critical-104k-support-eyes-on-97k-if-it-breaks/)
