Analysis of Bitcoin's current price action shows signs of consolidation, indicating possible upcoming volatility.
Current Trends of Bitcoin
On the 4-hour chart, Bitcoin shows signs of sideways consolidation, suggesting that the market might be preparing for a larger price movement. Previously, analysis indicated a key point where the price could return to the prior support zone.
Resistance and Bearish Sentiment
Bitcoin recently surged but faced significant resistance at key supply zones. This position supports predictions that the cryptocurrency is unlikely to hold above these levels. It is expected that the price will continue to decline if it fails to maintain critical support levels.
Key Support Zones and Analyst Data
Glassnode's on-chain data highlights important price points for traders to watch. Analyst Ali Martinez identified key levels at $108,250, $104,520, and $97,050, which will serve as potential floors for Bitcoin's price. If Bitcoin cannot hold above these levels, it might trigger deeper corrections.
The overall market dynamics suggest that Bitcoin may face further declines unless it can maintain above critical support levels.
