Bitcoin’s Next Move Hinges On $98,000 Price Level, Analyst Explains Why

The price of Bitcoin (BTC) suffered a significant loss on Friday as prices dipped below $102,000 marking the end of a rather turbulent trading week. As the global financial markets weathered major losses, Bitcoin made no new price discovery, casting more speculations over the bull market.

Critical Price Level Emerges At $98,000 For Bitcoin

Despite an overall positive performance in January, Bitcoin has struggled to confirm the bull run continuation with its all-time high price increasing by merely 0.6%.

As market investors remain confident of more price gains, blockchain analytics firm Glassnode has highlighted a price level that might prove pivotal to Bitcoin’s current bullish setup. In a new post on X, Glassnode shares that market participants have traded a substantial volume of BTC between the price range of $94,000 – $101,000 over the last 45 days.

As a result of this development, there is currently a dense supply cluster forming around the $98,000 price zone indicating a significant amount of investors are acquiring BTC near this price zone. Historically, price areas of high accumulation activity are considered important as they tend to serve as strong support in market downturns and act as resistance during price rallies.

Therefore, if Bitcoin consolidates above $98,000 for an extended period, this price zone could form a sturdy floor, offering support for further rallies in the current bullish structure. However, a fall below this price level could convert it into a strong resistance zone as investors may aim to sell to recoup losses. 

In terms of immediate price movement, if Bitcoin bulls can hold above $98,000 with sufficient buying pressure, the asset could make a return to the $106,000 price region which currently represents a strong psychological resistance zone. On the other hand, if sellers overpower demand at the $98,000 price level, Bitcoin is subject to further decline with a possible retest at $92,000 on the table.

BTC Records Nearly $450 Million In Exchange Outflows

In other developments, the Bitcoin market registered $442 million in exchange outflows over the past week. According to more data from IntoTheBlock, a net outflow of $70 million was reached as exchange inflows stood at $372 million.

Generally, higher exchange outflows than inflows is a bullish development indicating investors are less interested in selling and are moving their assets to private wallets in expectation of a price gain. At press time, BTC trades at $102,269 after a 1.94% decline in the past day. Meanwhile, the asset’s daily trading volume is down by 12.58% and valued at $44.44 billion.

Featured image from Depositphotos, chart from Tradingview