Bitcoin Price Analysis: Will BTC Break $98.7K or Fall to $90K?

The post Bitcoin Price Analysis: Will BTC Break $98.7K or Fall to $90K? appeared first on Coinpedia Fintech News

Bitcoin (BTC) price has failed to rally beyond the crucial threshold of around $98.7k in the past three weeks, signaling potential midterm correction. The $100k crusade could have to wait a while longer before the bullish momentum gains traction.

Furthermore, the volume of Bitcoin’s daily active address and whale activities has significantly declined in the past week. Ordinarily, a rebound in the two factors is needed to guarantee a bullish continuation for Bitcoin in the near term.

Short-term Targets for Bitcoin

From a technical analysis standpoint, Bitcoin price has been forming a potential midterm reversal pattern. According to crypto analyst Ali Martinez, Bitcoin price, in the one-hour time frame, has been forming a head and shoulder (H&S) pattern coupled with bearish divergence on the Relative Strength Index (RSI).

In case Bitcoin price struggles to rally beyond $98.7k in the near term, Martinez believes that a drop towards $90k will be inevitable. In case of further bearish sentiment, Bitcoin price could drop towards the support level above $85k before establishing a fresh bullish momentum.

Mixed Activities from Whale Investors

According to on-chain data analysis provided by IntoTheBlock, long-term holders are gradually reducing their balances, whereby they currently hold about 12.45 million BTCs, the lowest level since July 2022. 

Nonetheless, the ongoing balance decline for long-term Bitcoin holders is much lower compared to the previous two cycles.

As Coinpedia reported, the ongoing institutional FOMO, led by MicroStrategy and BlackRock’s IBIT, has seen the overall supply of Bitcoin on centralized exchanges gradually decline amid the ongoing consolidation. 

In the past four weeks, the overall supply of Bitcoin on CEXes has declined by more than 123k to hover about 2.27 million at the time of this report.